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 - rates updated daily
Term Deposit
interest rateMinimum depositGovt Deposit Guarantee0.75% p.a.
1 year$1,000Yes up to $250,000Great 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.
Term 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 2021 for Term Deposits.
- Minimum deposit
- $1,000
- Maximum deposit
- $1,000,000
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Judo Bank Term Deposit
Personal Term Deposit
interest rateMinimum depositGovt Deposit Guarantee0.85% p.a.
1 year$5,000Yes up to $250,000Competitive rates and fast online application. Start investing with as little as $5,000 with no account keeping or set up fees.
Personal Term Deposit
Competitive rates and fast online application. Start investing with as little as $5,000 with no account keeping or set up fees.
- Minimum deposit
- $5,000
- Maximum deposit
- $500,000
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the MyLife MyFinance Personal Term Deposit
Term Deposit
interest rateMinimum depositGovt Deposit Guarantee0.60% p.a.
1 year$10,000Yes up to $250,000$0 Set up and no ongoing account-keeping fees. Interest rate depends on balance amount. Optional 3,6,9 or 12 month terms. Balances from $10,000.
Term Deposit
$0 Set up and no ongoing account-keeping fees. Interest rate depends on balance amount. Optional 3,6,9 or 12 month terms. Balances from $10,000.
- Minimum deposit
- $10,000
- Maximum deposit
- $2,000,000
- Can interest be paid to another bank?
- no
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Citi Term Deposit
Term Deposit
interest rateMinimum depositGovt Deposit Guarantee0.60% p.a.
1 year$1,000Yes up to $250,000Terms from 3 to 36 months. A guaranteed rate. No account keeping fees. Enjoy a fixed rate or return. Get a written notice before your deposit matures.
Term Deposit
Terms from 3 to 36 months. A guaranteed rate. No account keeping fees. Enjoy a fixed rate or return. Get a written notice before your deposit matures.
- Minimum deposit
- $1,000
- Maximum deposit
- $499,999
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Teachers Mutual Bank Term Deposit
Term Deposit
interest rateMinimum depositGovt Deposit Guarantee0.45% p.a.
1 year$5,000Yes up to $250,000Flexible 3 to 60 month terms available. $0 account keeping fees. Flexible interest payments at maturity or annually. Minimum $5,000 deposit.
Term Deposit
Flexible 3 to 60 month terms available. $0 account keeping fees. Flexible interest payments at maturity or annually. Minimum $5,000 deposit.
- Minimum deposit
- $5,000
- Maximum deposit
- $10,000,000
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the BankVic Term Deposit
*Calculated from information available in the Mozo database, correct as of 29 January 2021.
^See information about the Mozo Experts Choice Term Deposit Awards
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