July term deposits snapshot: Rates above 2% a thing of the past as banks continue to make cuts

By Tara McCabe · · 4 min read
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Term deposit rates at or above 2% are officially a thing of the past according to Mozo data*. 

At the end of June, Judo Bank was the last bank to drop term deposit interest rates below 2%. It still holds the top spot for two, three, four and five year term deposits as follows:

  • Judo Bank 2-year term deposit - 1.75% p.a.
  • Judo Bank 3-year term deposit - 1.60% p.a.
  • Judo Bank 4-year term deposit - 1.70% p.a.
  • Judo Bank 5-year term deposit - 1.95% p.a.

All big four term deposit rates now below 1%

Following a slew of rate cuts, none of the big four banks now have a term deposit rate above 1% p.a. 

All four major banks cut interest rates across all of their terms in June. Westpac and ANZ now offer the lowest term deposit rates of just 0.15% p.a. for a 1-month term deposit.

Commonwealth Bank made the biggest cuts out of the four in June, reducing its term deposit rates by as much as 25 basis points. It’s highest term deposit rate now sits at 0.95% p.a. for an 8-month term.

Term deposits expert predictions for July

According to Mozo’s interest rates expert Peter Marshall, it is highly likely that banks will continue to reduce rates in the coming month.

“While there may be less cuts than in June, given that there’s not much competition at the moment, I do expect providers to continue to trim term deposit rates in July,” said Marshall.

The question is, with rates constantly being chiselled away at, are term deposits still worth it?

Marshall said that although term deposit rates are down at the moment, they are still worth looking into.

Both savings rates and term deposit rates are on a downward spiral. The advantage of putting your money in a term deposit, however, as opposed to a savings account, is that your term deposit rate will be fixed for whatever length of time you choose to stash your cash for. With a savings account, on the other hand, interest rates are variable, meaning they could continue to go down on a regular basis.

“With a term deposit you know exactly what return you’re going to get for the period of time your funds will be locked away for. So, even if it is a low rate, you can be sure that in one or two years time, your money is going to have increased,” said Marshall.

Curious to see what term deposit rates are on offer right now? Check out the term deposit rates on offer below or head to Mozo’s high interest savings account page for more options.

*There are currently no term deposits with interest rates above 2% p.a. available in the Mozo database, as of 1 July 2020.

Compare term deposit rates

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Last updated 27 July 2024 Important disclosures
  • Mozo Expert Choice Badge
    Term Deposit

    5.25% p.a.
    6 months

    $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.

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  • SMSF Term Deposit

    5.25% p.a.
    6 months

    $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.

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  • Term Deposit - Online only

    5.15% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Looking for returns that return? Invest as little as $1,000 or as much as $1,000,000. Apply online today in as little as 5 minutes. Protected by the Australian Government’s Financial Claims Scheme up to $250,000.

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  • Term Deposit

    3.70% p.a.
    6 months

    $5,000

    Yes up to $250,000

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    Details
  • 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

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    Details

* 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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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.

Today's term deposit rates