While spring has finally arrived in Australia, it seems that term deposit rates have not sprung forwards but fallen further backwards recently. However, there are still some competitive rates on the market if you’re willing to look around.
The Reserve Bank of Australia held the cash rate at 0.25 per cent again this month, leaving little room for savers to grow their deposits.
In fact, RateCity research found that in the three months leading to September, 96 term deposit providers cut rates. This brings the average 12-month term deposit rate down to 0.91 per cent, the average 3-year rate down to 0.96 per cent, and average 5-year rate down to 0.96 per cent.
This means, for example, a $25,000, 12-month term deposit on the average rate of 0.91 per cent, earning interest at maturity, would only earn $227.50 in that deposit period. That’s not a lot of return for a savings tool that used to have rates starting with a 6 only a decade ago.
For new or existing term deposit customers, you may be wondering where you can earn a good return on your deposit, especially if your current provider has cut rates too.
Thankfully, RateCity has done the hard work for you through its Real Time Ratings™ calculations. The best term deposits as determined by the Real Time Ratings™ system have been tallied up, and every deposit is rated and ranked daily. This ensures you have the most accurate score to help you choose.
Best 12-month term deposits
For savers looking to earn interest with a shorter turn around, here are some of the most competitive 12-month term deposits on the market.
Best 3-year term deposits
For those looking for a longer-term option for their savings, here are some of the most competitive 3-year term deposits on the market.