Bank First launches innovative interest-first offer as term deposit rates begin to creep up

Long-term savers may soon get some much-needed relief, with term deposit rates trending upward, and an innovative new product from Bank First recently hitting the market.

Mozo data shows that April was the second month in a row where term deposit interest rates trended upwards, in stark comparison to rates for savings accounts, which continued their long-time trend of plummeting returns.

According to Mozo Data Manager Peter Marshall, the uptick in banks increasing term deposit rates may reflect global funding conditions.

“With the cost of overseas funding rising, banks are likely looking to bolster their local funding instead. One way of doing that is to bump up term deposit rates, to entice customers to lock their savings away with the bank for an extended period,” he explained.

The bad news is that despite 19 providers mainly increasing term deposit rates compared to just 5 mainly slashing rates, the top offers in the market haven’t improved since last month.

“We’re seeing a trend toward interest rate rises in term deposits, but there haven’t been any big, market-changing moves just yet. I think we might be waiting a while still for that,” Marshall said.

One market-changer, however, came in the form of a completely new term deposit offer from customer-owned Bank First.

The recently introduced Bank First Interest First Term Deposit is available for a five month term, with 2.30% interest on offer for savers locking away $500 to $49,999, or 2.45% for up to $1 million. In what is potentially a market first, this interest is paid into a customers Bank First transaction account on the first day of the investment term.

“This product is good news for savers who are looking for an immediate return on their rainy day fund, and the rate on offer, while not the highest around, is relatively competitive. For some savers, the upfront interest may be worth the slightly lower rate,” said Marshall.

You can find out more about the Bank First First Term Deposit here, check out some of the top term deposit offers in the table below, or head over to our term deposit comparison table to find the best value offer for you. 

Hot term deposit offers to grow your savings - last updated 19 August 2022

Search promoted term deposits below or do a full Mozo database search . Advertiser disclosure
  • Mozo Expert Choice Badge
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.65% p.a.
    1 year
    $1,000
    Yes up to $250,000

    Great rates and incentives incl. 0.10% added loyalty bonus at renewal. Option to have interest paid to another bank. Winner of the Mozo Experts Choice Awards 2021^ for Term Deposits.

    Details
  • Hot Deal Earn a competitive rate of 3.24% half yearly or 3.25% annually on an 18 month term
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.10% p.a.
    1 year
    $5,000
    Yes up to $250,000

    Deposit of $5,000 up to $5 million. Choose a term from 1 month to 5 years. Select a range of convenient interest payment options. $0 establishment or ongoing fees. Easy tracking using the mobile banking app.

    Details
  • Mozo Expert Choice Badge
    Online Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.25% p.a.
    1 year
    $5,000
    Yes up to $250,000

    No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.

    Details
  • Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.10% p.a.
    1 year
    $5,000
    Yes up to $250,000

    Earn higher interest if you deposit $5,000 or more. Choose the length of your term, from just one month. Choose how and when you receive interest payments – reinvest or transfer to another bank account. Use internet or mobile banking to check your balance. $1,000 minimum investment amount.

    Details

* Different interest rates apply to different amounts or different interest payment frequencies.

^See information about the Mozo Experts Choice Term Deposit Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.