November term deposits: Is now the time to lock in a rate above 1%?

Woman leans on kitchen counter, looking at term deposits on her phone.

Article updated on 5 November 2020.

With a potential Reserve Bank cash rate cut looming, banks did not let up on interest rate cuts to term deposits in October. In fact, in the past month alone 57 financial providers in the Mozo database reduced rates for terms.

Now while the outlook for terms seems fairly bleak, even in the current climate, there is still some appeal to locking your money away in one. 

Prepping for the years ahead

Average interest rates are down all across the board. Even the most competitive saving and term deposit rates in Mozo’s database are falling. According to Mozo’s data experts, it could be years before interest rates rise again.

It is for these exact reasons that now might be the time to lock in a rate above 1.00% p.a. While the cuts continue to come thick and fast, there are still short and long term rates well above the average. Which is currently 0.77% p.a. for a 12-month term*.

Shorter terms to consider

Right now some of the top interest rates in the Mozo database for a term shorter than one year are:

ProviderInterest rateTerm lengthFor balances between
BankVic1.25% p.a.9 months$5,000 and $100,000
BankVic1.15% p.a.11 months$5,000 and $100,000
BankVic1.15% p.a. 10 months$5,000 and $100,000
BankVic1.15% p.a.8 months$5,000 and $100,000
BankVic1.15% p.a.7 months$5,000 and $100,000
BankVic1.15% p.a. 6 months$5,000 and $100,000

A number of BankVic’s shorter terms also offer interest rates of 1.15% p.a. for three, four and five month term deposits.

Judo Bank’s market leading rates

When it comes to longer terms, Judo Bank is sitting firmly at the top of Mozo’s interest rates table. Currently the bank’s market leading rates are:

  • 2-year term deposit, 1.45% p.a.
  • 3-year term deposit, 1.55% p.a.
  • 4-year term deposit, 1.30% p.a.
  • 5-year term deposit, 1.35% p.a.

Weighing up the situation

With all four major banks reducing term deposit rates in October, now might be the time to look beyond the bigger players.

More competitive term deposit rates are still available with smaller and online banks and credit unions. The question is how much do you put away and for how long? Use our term deposits calculator to work out how much interest you could earn on your stash.

* According to information available in the Mozo database, correct as of 30 October 2020.

Compare term deposits - last updated 31 May 2024

Search promoted term deposits below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Term Deposit

    5.00% p.a.
    1 year


    Yes up to $250,000

    Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)

  • Online Term Deposit

    5.00% p.a.
    1 year


    Yes up to $250,000

    No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.

  • Term Deposit

    4.90% p.a.
    6 months


    Yes up to $250,000

    Competitive fixed rates across investment terms ranging from 1 month to 5 years. No set up or establishment fees. $1000 minimum investment.


* Different interest rates apply to different amounts or different interest payment frequencies.

^See information about the Mozo Experts Choice Term Deposit Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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.