November term deposits: Is now the time to lock in a rate above 1%?
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:
| Provider | Interest rate | Term length | For balances between |
| BankVic | 1.25% p.a. | 9 months | $5,000 and $100,000 |
| BankVic | 1.15% p.a. | 11 months | $5,000 and $100,000 |
| BankVic | 1.15% p.a. | 10 months | $5,000 and $100,000 |
| BankVic | 1.15% p.a. | 8 months | $5,000 and $100,000 |
| BankVic | 1.15% p.a. | 7 months | $5,000 and $100,000 |
| BankVic | 1.15% 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
-
Term Deposit
5.00% 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.
CompareCompareTerm Deposit
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.
- interest rate
- 4.90% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Judo Bank Term Deposit
-
SMSF Term Deposit
4.95% p.a.
11 months$100,000
Yes up to $250,000
Invest your funds in a Beyond Bank Self-Managed Super Fund (SMSF) Term Deposit. Competitive fixed rates. Keep your savings securely locked away and backed by the Government Guarantee. Only available for balances greater than $100,000.
CompareCompareSMSF Term Deposit
Invest your funds in a Beyond Bank Self-Managed Super Fund (SMSF) Term Deposit. Competitive fixed rates. Keep your savings securely locked away and backed by the Government Guarantee. Only available for balances greater than $100,000.
- interest rate
- -
- Minimum deposit
- $100,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $100,000.00
- Maximum deposit
- $5,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
-
Term Deposit
4.65% p.a.
7 months$10,000
Yes up to $250,000
Minimum $10,000 deposit. No account keeping fees. Terms from 3 months up to 2 years. Interest can be paid into a different bank. Balances up to $250,000 are guaranteed by the Australian Government. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareTerm Deposit
Minimum $10,000 deposit. No account keeping fees. Terms from 3 months up to 2 years. Interest can be paid into a different bank. Balances up to $250,000 are guaranteed by the Australian Government. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- interest rate
- 4.95% p.a.
- Minimum deposit
- $10,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $10,000.00
- Maximum deposit
- $5,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the ING Term Deposit
-
SMSF Term Deposit
5.00% 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.
CompareCompareSMSF Term Deposit
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.
- interest rate
- 4.90% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
-
Term Deposit
5.05% p.a.
9 months$25,000
Yes up to $250,000
Enjoy flexible terms starting from 31 days up to 5 years with a Heartland Bank Term Deposit. Get your interest paid monthly (on selected terms). Your savings are protected by the Government guarantee. Minimum deposit amount of $25,000 up to $1,000,000.
CompareCompareTerm Deposit
Enjoy flexible terms starting from 31 days up to 5 years with a Heartland Bank Term Deposit. Get your interest paid monthly (on selected terms). Your savings are protected by the Government guarantee. Minimum deposit amount of $25,000 up to $1,000,000.
- interest rate
- 5.00% p.a.
- Minimum deposit
- $25,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $25,000.00
- Maximum deposit
- $1,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Heartland Bank Term Deposit
Your selected term deposits
Your selected term deposits
Your selected term deposits
Your selected term deposits
Your selected term deposits
* 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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