Smaller institutions offering highest 3-month term deposit rates

Found yourself with a bit of extra cash and wondering what to do with it? Putting the funds in a three-month term deposit may be a clever move while you research your options.

If you want the highest interest rates for three-month term deposits, you might want to avoid the big four banks.

A range of smaller institutions are offering higher three-month interest rates, including challenger banks like MyState Bank and customer-owned institutions like Hunter United.

Here are some of your options if you want to place $20,000 in a three-month term deposit:

Data accurate: 4 September 2019

Australia’s big four banks, by contrast, are paying lower interest rates on three-month term deposits:

That said, three-month term deposits aren’t the only option for your money.

You could also put your money in a longer term deposit, which might pay a higher interest rate, or put it in a transaction account or savings account, which would allow you to withdraw your money whenever you wanted.

Three-month term deposits help you buy time

There are several reasons why someone might be sitting on a lot of money right now:

• Accumulated savings
• Proceeds from selling shares
• Tax refund
• Inheritance

There are various ways someone might wish to invest that money:

• Property
• Shares
• Bonds
• Superannuation
• Gold
• Cryptocurrency

Putting the money in a three-month term deposit allows you to earn interest while you research how to invest your money.

If you get to the end of your term and you’re still unsure what to do, you can roll over the three-month term deposit.

Please note, though, that interest rates for three-month term deposits might have changed in the meantime, which is why it’s often a good idea to compare term deposits before agreeing to the rollover option.

Compare term deposits