Real Time Ratings™

Real Time Ratings™ rates over 100 deposit-takers with a score out of 5, based on how much the term deposit will cost and how much flexibility it offers.

What is Real Time Ratings™

Real Time RatingsTM is a world-first rating system that ranks term deposits based on your balance over the fixed time period.

Unlike other term deposit rating systems that grade their products once or twice a year, Real Time RatingsTM results are calculated as you use the site, making them as up to date as possible.

Real Time RatingsTM gives each term deposit a score out of five stars, based on interest earned and flexibility. It factors in your deposit amount and the fixed time period of your deposit so you can find the best term deposit applicable to you.

Locking away your savings shouldn’t be a complicated process. Real Time RatingsTM helps simplify choosing a term deposit by showing you the most up-to-date information and giving each deposit an easy-to-read star rating.

How we calculate Real Time Ratings™

Each term deposit displayed on RateCity’s term deposit comparison table has been assessed using an algorithm that compares the interest earned and features of all term deposits considered relative to its peers.

The Real Time Rating of each term deposit  is calculated by adding the Interest Score and Flexibility Score of the product, or simply:

Real Time RatingTM = Interest Score + Flexibility Score

How is the Interest Score calculated?

The Interest Score of each product is dynamically calculated using the average monthly interest earned by the term deposit (minus applicable account keeping fees). The average monthly interest earned is calculated with consideration to the following input fields from the RateCity term deposit comparison table:

  • Term Deposit Amount

  • Term

Only term deposits that meet the above user criteria are displayed on the table.

Different interest payment frequencies are accounted for in the average monthly interest calculation. It is assumed that payments over the term are paid into the term deposit and the interest is compounded over the term. The below table summaries how this is calculated:

 Number of compounding periods Interest per compounding period Interest earned per month Average monthly interest (minus fees)
The number of times interest is paid through the duration of the term deposit e.g. a 3 year term deposit paid monthly will be 36

The interest rate that is paid per compounding period e.g. a 3 year term deposit with a 5% p.a. Interest rate paid monthly is calculated as:(5% x 3) / 36 = 0.417%*

The interest per compounding period multiplied by the user input for the term deposit amount e.g. 0.417% x $50,000 = $208.50Any account keeping fees are deducted from the interest earned per month to get the average monthly interest used in the Interest Score e.g. 208.50 minus $2 monthly fee = $206.50

*interest rate above has been rounded for illustrative purposes

Each time a user input filter impacting the assumptions of the average monthly interest calculation is changed, the Interest Score calculations are retriggered and new scores are calculated to reflect the inputs.

Calculating Interest Score from Average Monthly Interest

When calculating the Interest Score from the market of average monthly interest amounts calculated, the following steps are taken to convert this into a score relative to the market of all term deposits on the RateCity database:

  • All term deposits are ranked based on their total monthly interest. This ranking is then changed into a percentile score. For example, the top 1% of accounts (those with the most flexibility points) are given a 99th percentile ranking.
  • Each product is then given a score that fits a normal distribution. This score is based on where it sits within the distribution of all the products, considering that the 'average' product scores a 3 and with variability around that average.

How is the Flexibility Score calculated?

Real Time Ratings™ uses discrete scoring (i.e. having a specific feature is worth a specific number of points) and the overall Flexibility Score is based on the aggregated total of all points scored across all features assessed.

For term deposits, all of the following positive features are scored equally:

  • Ability to have a joint application for the term deposit (i.e. multiple account holders)
  • If no withdrawal notice is required
  • If an email alert is received prior to maturity of the term deposit
  • If a phone alert is received prior to maturity of the term deposit
  • If a term deposit automatically rolls over at maturity
  • If interest can be paid to a different financial institution
  • If there is no penalty for an early withdrawal

The flexibility points scored by a product is then converted into the Flexibility Score using the following steps:

  • Adding up all the flexibility points for each term deposit being evaluated.
  • All term deposits are ranked based on their total flexibility points. This ranking is then changed into a percentile score. For example, the top 1% of accounts (those with the most flexibility points) are given a 99th percentile ranking.
  • Each product is then given a score that fits a normal distribution. This score is based on where it sits within the distribution of all the products, considering that the 'average' product scores a 3 and with variability around that average.

Applying Multiplier to Calculate Real Time Ratings™

Following the calculation of the Interest Score and the Flexibility Score, a Real Time Ratings™ is then calculated by multiplying the Cost Score and the Flexibility Score by a multiplier and adding these scores together to come up with the Real Time Ratings™ for the product.

This is done using the following multipliers with accompanying examples:

 Interest ScoreFlexibility Score Total Score 
 90% 10%Real Time RatingTM  = 4.33
Interest Score of 4.5 x .90 = 4.05Flexibility Score of 2.8 x .10 = 0.28

Any term deposit with a Real Time Rating™ that naturally calculates to above 5 will be adjusted down to 5 which is the highest possible rating.

How often are products reviewed for Real Time Ratings™ purposes?

Real Time Ratings are calculated on an hourly basis based on the information that is available in the RateCity database.

Does RateCity rate all products available in the market?

We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our Real Time Ratings. However, this process is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you. 

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To the extent that the information in this report constitutes general advice, this advice has been prepared by RateCity Pty Ltd A.C.N. 122 743 542 Australian Financial Services Licence (“AFSL”) and Australian Credit Licence number (“ACL”) 316710 (“RateCity”). The information has been prepared without taking into account your individual investment objectives, financial circumstances or needs. Before you decide whether or not to acquire a particular financial product you should assess whether it is appropriate for you in the light of your own personal circumstances, having regard to your own objectives, financial situation and needs. You may wish to obtain financial advice from a suitably qualified adviser before making any decision to acquire a financial product. RateCity provides information about credit products. It is not a credit provider and in giving you information it is not making any suggestion or recommendation to you about a particular credit product. Please refer to RateCity’s FSCG  for more information. You should check rates and product information directly with the provider. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

The information in this report must not be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or resold, or stored for subsequent use for any purpose, in whole or in part, in any form or manner or by means whatsoever, by any person without RateCity’s prior written consent. All information obtained by RateCity from external sources is believed to be accurate and reliable. Under no circumstances shall RateCity have any liability to any person or entity due to error (negligence or otherwise) or other circumstances or contingency within or outside the control of RateCity or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication, or delivery of any such information.

The RateCity Real Time RatingsTM results do not include all providers in the market  and may not compare all features relevant to you. The rating is only one factor to take into account when considering these products. RateCity  acknowledges that past performance is not a reliable indicator of future performance.

Reference to third party products, services or other information by trade name, trademark or otherwise does not constitute or imply endorsement, sponsorship or recommendation of RateCity by the respective trademark owner.