Have banks passed on term deposit rate rises for businesses?

By Jack Dona · · 2 min read
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The lull in business term deposit rates is seeing a major reversal, according to the average rates in Mozo’s database. 

The pandemic-induced lows have bounced back since the Reserve Bank of Australia (RBA) first raised the cash rate in May to combat inflation.

For example, a $25,000 deposit locked away for 12 months attracted a comparatively low rate of 0.71% on average in April. But when the RBA announced a basis point increase of 0.25% in May, average rates jumped up to 1.10%, for the same term. 

As consecutive monthly hikes made headlines, business term deposit rates grew too. 

In June, the average rate reached 2.04%, followed by another increase to 2.49% for July. 

With another RBA cash rate decision set to be announced in August, many are concerned about how high interest rates might go for those with home loans. However, those looking for savings opportunities (in the form of term deposits or savings accounts) might be seeing the prospective rise in a different light.   

As a business owner, seeking to weather the storm of rising interest rates and the increasing cost of living, it might be worth considering locking away some of your cash to maximise your savings – especially with comparatively attractive rates on offer right now. 

Or if you’re looking to have easier access to your money, you may consider looking at the recent developments in business savings account rates. 

Here are some of the latest small business term deposit rates available:

Small business term deposit comparisons on Mozo - last updated 25 April 2024

Search promoted business term deposits below. Advertiser disclosure
  • Business Term Deposit

    2.00% p.a.

    $10,000.00

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  • Business Term Deposit

    4.90% p.a.

    $5,000.00

    Minimum opening balance of $5,000. To assist your cash flow needs, interest can be paid monthly, quarterly, six monthly, annually or at maturity on selected terms.

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