Term deposits: Why timing your move before the November RBA decision could pay off
The clock’s ticking for savers. With the Reserve Bank of Australia’s (RBA) next decision just around the corner, one question looms large: should you lock in a term deposit rate now, or wait to see what happens next?
Term deposit rates have been slipping since mid-2024, as inflation cools and the banks respond to RBA cuts. Term deposit rates typically move in line with the cash rate, so any change can affect what banks offer. That means your timing matters. Lock in now, and you’ll secure today’s high returns. Hold off, and you could miss out if the downward trend continues.
The saver’s dilemma: lock in or hold off?
Your next move may depend on where you think the RBA’s headed:
| Option | Makes sense because… | May suit savers who... |
|---|---|---|
|
Lock in |
Term deposit rates continue to drop. Securing one now locks in a strong return before any more cuts hit. |
Want certainty and think the best rates are behind us. |
|
Wait |
You think the RBA will hold the cash rate and don’t expect the banks to trim rates further. In the interim, you could park your funds in a savings account. |
Don’t mind holding out for potentially higher returns. |
What’s the smart play?
Terms of three to nine months and 12 months currently offer the best rates on Mozo’s database (see the table below) between 4.20% p.a. to 4.35% p.a., and their shorter duration is ideal for reclaiming or reinvesting funds next year if market conditions shift.
Longer terms may only make sense if you’re betting on a steep drop in the RBA cash rate – which seems unlikely given economic forecasts indicate we’re at the tail end of a rate cut cycle.
Laddering term deposits is a strategy that can help balance risk and returns. By splitting savings across different terms, you can access some funds sooner while locking in higher rates on longer ones. It also offers flexibility to reinvest at better rates if conditions change. View
Leading term deposit rates on Mozo
| Term | Rate (p.a.) | Provider |
|---|---|---|
|
3 months |
4.20% |
BOQ Specialist |
|
4 months |
4.20% |
BCU Bank |
|
5 months |
4.25% |
MOVE Bank |
|
6 months |
4.35% |
Heartland Bank |
|
7 months |
4.35% |
Judo Bank |
|
8 months |
4.20% |
Judo Bank |
|
9 months |
4.22% |
Heartland Bank |
|
1 year |
4.25% |
Heartland Bank |
Source: Mozo’s database. Rates accurate as at 29/10/2025, based on a $25,000 deposit.
Leading unconditional savings rates on Mozo
| Bank | Savings account | Maximum rate (p.a.) |
|---|---|---|
| Rabobank | High Interest Savings Account | 5.00% for the first 4 months, then rate reverts to 3.45% |
| Bankwest | Easy Saver | 4.80% for the first 4 months, then rate reverts to 4.00% |
| Macquarie | Savings Account | 4.60% for the first 4 months, then rate reverts to 4.25% |
| abal banking | Online Savings Account | 4.55% ongoing |
| Credit Union SA | Netsave Account | 4.50% for the first 4 months, then rate reverts to 0.75% |
| Regional Australia Bank | Savings Account | 4.50% for the first 3 months, then rate reverts to 2.50% |
| source: mozo.com.au as at 29 October 2025, leading savings account rates without conditions, including introductory rates, at a balance of $25,000. | ||
Don’t fall for the loyalty trap
No matter which term you pick, make sure you’re getting the best available rate if you decide to carry over your principal and/or profits.
Many banks reserve their sharpest offers for new customers, potentially leaving loyal savers stuck on less competitive returns, particularly if they allow their funds to go into an automatic rollover – the default renewal of your term deposit at maturity, often at a lower standard rate.
Now’s the time to act. Compare rates, choose your duration, and lock in a term deposit.