With MOVE Bank cutting interest rates by as much as 40 basis points today, term deposits have once again been shaken up.
MOVE’s previously market-leading term deposits have dropped, leaving room for competitor Judo Bank to take out the top spots for three and six month terms in the Mozo database*. The 1.36% p.a. interest rate that comes with Judo Bank’s three and six month terms is now the most competitive in our database (for each respective term). This is closely followed by interest rates from Australian Unity and Rabobank.
Judo Bank, which came onto the scene in 2016, has consistently offered more competitive rates for longer terms but has struggled to claim the top spots for shorter terms. All that has changed with this most recent cut.
Judo Bank’s top interest rates in the Mozo database are as follows:
- 3 month TD - 1.36% p.a.
- 6 month TD - 1.41% p.a.
- 2 year TD - 1.50% p.a.
- 3 year TD - 1.55% p.a.
- 4 year TD - 1.55% p.a
- 5 year TD - 1.65% p.a.
Term deposit advantages
Although term deposit rates are on a downward spiral, there are still advantages to locking your money away in one.
Unlike a savings account, a term deposit rate is fixed for whatever term period you choose. For instance, if you choose to lock your money away for one year, then the rate you get on signing up will apply for the full twelve months. On the other hand, if you put your money in a savings account, then your interest rate could go down at any time. It’s variable.
The only thing to keep in mind with a term deposit is that you won’t be able to access your funds for the period you lock them away.
Check out the deals on offer below to see what other term deposits are available. Once you’ve settled on one you think will suit you best, you can even use Mozo’s term deposits calculator to figure out how much interest you’ll make during the term.
Compare 6 month term deposits - last updated November 27, 2020
- AMP Bank
Term DepositAMP Bank
- MyState Bank
Online Term DepositMyState Bank
Online Term DepositDetails
**As stated the 'top spots' referred to are in the Mozo database. Interest rates correct as of 23 July 2020.
^See information about the Mozo Experts Choice Term Deposits Awards
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