Beat the clock: Lock in higher term deposit rates before the May RBA decision

By Peter Terlato · · 2 min read
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With the Reserve Bank of Australia (RBA) widely expected to deliver another interest rate cut on 20 May, time is running out for savers to lock in higher term deposit rates before they slip further.

Banks have already started winding back their offers in anticipation of the coming cut, and the signs are hard to ignore. Westpac, for example, just trimmed its 11-month special offer term deposit rate by 10 basis points to 4.10% p.a. But customers can still score a slight bump – up to 4.20% p.a. – when opening or renewing their account via the Westpac app or online banking.

It’s a move that reflects a broader trend. Over the past few months, term deposit rates have been edging lower, both before and after the RBA’s February rate cut. And with another cut on the cards this month, those downward adjustments may only accelerate.

Still, not every institution is moving in lockstep with the Big Four. Several smaller banks and digital challengers are offering market-leading returns for those who act quickly. Judo Bank, for instance, is advertising rates as high as 4.70% p.a. for 3-month terms, while other providers are still offering rates above 4.50% for short- to medium-term deposits.

Compare the best term deposit offers and rates

That’s significant because shorter-term options could be especially appealing right now. They offer the opportunity to lock in a decent rate before the next cut, while retaining the flexibility to reassess your strategy later in the year – especially if the RBA continues to ease.

What savers can do now

If you’re facing shrinking returns, there are other options to explore:

  • Employ unique strategies: Term deposit laddering allows you to split your money across different terms to balance access and better rates.
  • Switch to savings: Some high-interest savings accounts still offer competitive rates, especially if bonus conditions are met.
  • Compare rates regularly: With banks adjusting offers quickly, checking interest rates could help you lock in a better deal.
Last updated 18 June 2025 Important disclosures

Term deposit comparisons on Mozo

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  • Promoted

    Term Deposit

    Best rate
    4.55 % p.a.
    for 6 months
    ($1,000 to $2,000,000)
    Next best option
    4.45 % p.a.
    for 5 years
    ($1,000 to $2,000,000)
    Go to site
    • 0.10% added loyalty bonus at renewal
    • Option to have interest paid to another bank
    • Winner of the Mozo Experts Choice Awards 2025^ for Term Deposits.
  • Promoted

    6 months Special Term Deposit

    Best rate
    4.60 % p.a.
    for 6 months
    ($1,000 and over)
    Next best option
    No other rates match this filter
    Go to site
    • Minimum $1000 deposit
    • Simple and secure online application
    • Withdraw at maturity or reinvest
  • Promoted

    SMSF Term Deposit

    Best rate
    4.55 % p.a.
    for 6 months
    ($1,000 to $2,000,000)
    Next best option
    4.45 % p.a.
    for 5 years
    ($1,000 to $2,000,000)
    Go to site
    • Interest paid monthly, yearly, or at maturity
    • Choose from terms of 3 months up to 5 years
    • Only accessible to SMSFs with two or up to four individual trustees or one corporate trustee.
  • Promoted

    Term Deposit

    Best rate
    4.55 % p.a.
    for 4 months
    ($5,000 to $1,000,000)
    Next best option
    4.50 % p.a.
    for 6 months
    ($5,000 to $1,000,000)
    Go to site
    • Minimum $5K investment
    • Open account in as little at 5 mins
    • Interest paid at maturity for terms less than 1 year

  • 6 months Special Term Deposit

    Best rate
    4.60 % p.a.
    for 6 months
    ($1,000 and over)
    Next best option
    No other rates match this filter
    Go to site
    • Minimum $1000 deposit
    • Simple and secure online application
    • Withdraw at maturity or reinvest
Showing 4 results from 92 term deposits. Use the filters to see more

* 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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