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How far can your savings take you? Some of the top-rated term deposits in February 2024

Mark Bristow avatar
Mark Bristow
- 3 min read
How far can your savings take you? Some of the top-rated term deposits in February 2024

Has your term deposit been effectively losing you money in the past? With Australia’s inflation falling faster than expected, it may be getting easier to find term deposits that can keep your money from going backwards. But it’s important to compare the available options and choose a term deposit that will suit your needs and help you reach your savings goals.

The Australian Bureau of Statistics (ABS) found that in the December 2023 quarter, inflation grew at the lowest rate since 2021, increasing by just 0.6%. Year on year, inflation was found to be 4.1%, which is lower than the forecasts from many economists, including the big banks and the Reserve Bank of Australia (RBA).

Falling inflation could turn out to be a net positive for some Australian savers. If the interest rate on your savings account or term deposit is higher than the current inflation rate, it’s possible to grow your wealth faster than inflation can erode its purchasing power. This could help preserve the value of your savings and let you make more meaningful progress towards your savings goals, though you’ll also need to account for tax in your calculations.

With some economists forecasting that the Reserve Bank of Australia (RBA) could choose to start cutting the national cash rate before the end of the year, it’s possible that term deposit interest rates could also fall. That said, the fixed interest rates on active term deposits will be unaffected by changes to variable rates, at least until the deposit reaches maturity. At this point, you may need to decide whether your best option will be to roll over your deposit for another term, or to compare some alternative term deposits for an option that may better suit your goals.

Remember that the term deposit with the highest interest rate may not always be the one best-suited to your financial situation. You may want to compare the terms, conditions, features and benefits of different term deposits before choosing an option that could help you reach your goals. 

RateCity’s Real Time Ratings™ offer a means to quickly and easily compare the overall value offered by term deposits. These simple star ratings combine the interest and flexibility of each term deposit, and the ratings are updated regularly so you can be confident in their accuracy. Top-rated term deposits are ranked in different categories on the RateCity Term Deposit Leaderboards, with some of the top-rated term deposits becoming eligible for the RateCity Gold Awards.  

Some of the top-rated 3-month term deposits

The top-rated 3-month term deposits RateCity.com.au. Data based on deposit of $50k, interest paid on maturity.

Some of the top-rated 6-month term deposits

The top-rated 6-month term deposits RateCity.com.au. Data based on deposit of $50k, interest paid on maturity.

Best 12-month term deposits

The top-rated 12-month term deposits RateCity.com.au. Data based on deposit of $50k, interest paid on maturity.

Compare term deposits

Product database updated 27 May, 2024

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.