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

By Tara McCabe ·

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 November 28, 2020

Search promoted term deposits below or do a full Mozo database search. Advertiser disclosure.

  • mozo-experts-choice-2020
    Term Deposit

    0.75% p.a.
    1 year

    $25,000

    Yes up to $250,000

      Compare
    Details
  • Online Term Deposit

    0.75% p.a.
    1 year

    $5,000

    Yes up to $250,000

      Compare
    Details
  • Term Deposit

    0.45% p.a.
    9 months

    $10,000

    Yes up to $250,000

      Compare
    Details
  • Online Term Deposit

    0.90% p.a.
    2 years

    $5,000

    Yes up to $250,000

      Compare
    Details

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

^See information about the Mozo Experts Choice Term Deposits Awards

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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.

Tara McCabe
Money writer

Tara McCabe writes across all areas of personal finance here at Mozo from banking through to insurance. Tara is expert at practical money tips, showing readers ways to live richer and be socially conscious while doing it. She earned a BA (Hons) in English Literature from Canterbury Christ Church University.