October snapshot: Could term deposits be a safe bet as interest rates fall?

By Tara McCabe · · 2 min read
Fact Checked
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Woman sitting looking at term deposits on her laptop.

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

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 101 term deposits.
Last updated 27 July 2024 Important disclosures
  • Mozo Expert Choice Badge
    Term Deposit

    5.25% 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.

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  • SMSF Term Deposit

    5.25% 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.

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  • Term Deposit - Online only

    5.15% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Looking for returns that return? Invest as little as $1,000 or as much as $1,000,000. Apply online today in as little as 5 minutes. Protected by the Australian Government’s Financial Claims Scheme up to $250,000.

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  • Term Deposit

    3.70% p.a.
    6 months

    $5,000

    Yes up to $250,000

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    Details
  • Term Deposit

    4.25% p.a.
    1 year

    $5,000

    Yes up to $250,000

    No set up, monthly service or management fees & choose to invest from $5,000 or more

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    Details

* 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.

Today's term deposit rates