Suncorp and CUA ranked best for term deposits

Suncorp and CUA have been ranked as the best Australian institutions for taking up a term deposit.

A study by Canstar Cannex found that Suncorp offers the best value in term deposits while CUA is the best option for those who prefer banking with a credit union or building society.

The research also revealed that there has been a sharp rise in the number of savers looking to compare term deposits over the last three years.

According to Canstar Cannex, term deposits in Australia have grown from just over $100 billion in September 2007 to more than $200 billion in May 2010.

Canstar Cannex financial analyst Adam Beu noted that the banks have been keen to offer good returns in recent years.

"It's a win-win situation," he said. "By using your savings, the banks don't have to buy more expensive money on the wholesale money market and the investor benefits from a much better return.

"Most term deposits offer a rate of six per cent or 6.5 per cent for a 12-month term and usually, as the term increases, so does the interest rate."

This article is brought to you by Mozo – Helping you compare term deposits