February snapshot: Term deposit rate cuts ease up in new year
In December last year, Mozo counted a huge 785 term deposit interest rate cuts. This January there have been 382 from 36 providers. So while term deposit interest rates are still heading downwards, it looks like banks might have started to ease up on the cuts.
What are the big four offering?
In the last month ANZ, Commonwealth Bank and Westpac all made cuts to term deposits. At the moment, the Commonwealth Bank offers the most competitive term deposit rate out of the four major banks. This is 0.45% p.a. with its 12-month term deposit.
Although it should be noted that this is still less than the average 12-month term deposit interest rate, which is currently 0.58% p.a.* That’s taking into account all banks and credit unions available in the Mozo database.
Rates above 1%
For anyone looking to lock in a longer term deposit, interest rates above 1.00% are still available. Right now the most competitive rates in the Mozo database for terms from 1 to 5 years are:
- BankVic 1 year TD - 1.05% p.a.
- Judo Bank 2 year TD - 1.20% p.a.
- Judo Bank 3 year TD - 1.20% p.a.
- Judo Bank 4 year TD - 1.20% p.a.
- Judo Bank 5 year TD - 1.20% p.a.
To be eligible for these more competitive interest rates, you will have to deposit between $5,000 and $100,000 with BankVic and between $1,000 and $1 million with Judo Bank.
Savings strategy
With interest rates low across the board, now might be the time to come up with a savings strategy. Our tips to help you save include:
- Going 50:50. As suggested previously by the Mozo experts, one thing you could do is go 50:50. That means putting half your savings in a savings account and the other half in a term deposit.
- Figure out what type of saver you are. Read our article to find out what type of savings method might work for you.
- Ditch unnecessary expenses. Review your outgoings and see if there are any unnecessary expenses you could ditch.
- Educate yourself. Improve your financial knowledge and see if you could save a bob or two.
Finally, if you are keen to lock your money away, head to Mozo’s compare term deposits page. Or take a look at the 1-year terms on offer below.
Compare 1-year term deposits
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Mozo experts choice awards won:
- Term Deposit - 2024
Term Deposit
5.25% 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 2024^ for Term Deposits.
CompareCompareTerm Deposit
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 2024^ for Term Deposits.
- interest rate
- 5.25% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Judo Bank Term Deposit
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SMSF Term Deposit
5.25% p.a.
1 year$1,000
Yes up to $250,000
Apply digitally in minutes and manage your SMSF Term Deposit. Flexible cash flow management with three interest payment frequencies that suit you: monthly, yearly, or at maturity. Choose from terms of 3 months up to 5 years. No application or monthly account fees but eligibility criteria and terms and conditions apply. Only accessible to SMSFs with two or up to four individual trustees or one corporate trustee.
CompareCompareSMSF Term Deposit
Apply digitally in minutes and manage your SMSF Term Deposit. Flexible cash flow management with three interest payment frequencies that suit you: monthly, yearly, or at maturity. Choose from terms of 3 months up to 5 years. No application or monthly account fees but eligibility criteria and terms and conditions apply. Only accessible to SMSFs with two or up to four individual trustees or one corporate trustee.
- interest rate
- 5.25% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
-
Term Deposit
4.25% p.a.
1 year$5,000
Yes up to $250,000
No set up, monthly service or management fees & choose to invest from $5,000 or more
CompareCompareTerm Deposit
No set up, monthly service or management fees & choose to invest from $5,000 or more
- interest rate
- 4.25% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Westpac Term Deposit
Your selected term deposits
Your selected term deposits
Your selected term deposits
*Calculated from information available in the Mozo database, correct as of 29 January 2021.
* Different interest rates apply to different amounts or different interest payment frequencies.
^See information about the Mozo Experts Choice Term Deposit Awards
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