With interest rates stuck at record lows, savers are facing tougher choices than ever when it comes to deciding where to park their hard earned cash.
Australia’s big four banks have always been a popular choice for term deposits, but choosing the security of a big bank can come at the expense of a competitive interest rate.
Only 12 months ago, the average 2-year term deposit rate offered by the big four banks was 3.13%. Fast-forward to present day and savers are facing a return of just 2.48%.
“In the current low rate market, savers need to look beyond the big banks to ensure they’re getting the best return on their money, says Mozo’s Head of Data, Peter Marshall.
“Savers should definitely be shopping around and considering some of the smaller banks and mutuals that have the better rates in the market”, he said.
Time to review where to put your savings? Check out our term deposit comparison table below.