October snapshot: Could term deposits be a safe bet as interest rates fall?
As predicted, cuts to term deposit interest rates started to slow down in September. Mozo recorded more cuts to savings rates than to term deposits last month. But with talk of a possible rate cut at the next Reserve Bank monthly meeting, there may yet be more reductions to come. So if you’re looking to lock away some cash before rates plummet any further, now is the time to get switching.
Where Term deposit rates stand
Around 56 providers that Mozo tracks in its database cut term deposit rates last month. The average 12-month term deposit rate fell seven basis points to 0.84% p.a. While this might seem like a rock bottom rate, it is still considerably higher than the average ongoing savings rate, which is currently a shockingly low 0.61% p.a.
All four of the big banks cut term deposit rates. ANZ sliced 45 basis points off its 8-month term deposit to 0.55% p.a. The bank’s new leading offer is its 10-month term deposit, which has an interest rate of 0.85% p.a. All other big banks, including Commonwealth Bank, NAB and Westpac reduced term rates by around five to fifteen basis points.
Judo Bank continues to lead the way
The good news is that there is still time to lock in a rate above 1.00% p.a.
Judo Bank, one of Australia’s newest banks, continues to offer some of the most competitive term deposit interest rates in Australia across a wide range of terms according to the Mozo database. These include:
- 3-month term deposit - 1.33% p.a.
- 6-month term deposit - 1.36% p.a.
- 9-month term deposit - 1.38% p.a.
- 1-year term deposit - 1.41% p.a.
- 2-year term deposit - 1.45% p.a.
- 3-year term deposit - 1.55% p.a.
- 4-year term deposit - 1.40% p.a.
- 5-year term deposit - 1.45% p.a.
These rates apply when you choose to have your interest paid to you at the end of the term. With these terms you can deposit as little as $1,000 or as much as $1 million. Deposits up to $250,000 are covered under the Government Deposit Guarantee Scheme.
Want to learn more about term deposits? Check out Mozo’s term deposit guides for more information. Or if you’re keen to find the one for you, have a look at the terms on offer below.
Compare term deposits
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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
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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
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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
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Your selected term deposits
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* 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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