Term deposit rates falling: Why it’s not too late to lock in and ladder your savings
There’s still time for savvy savers to make the most of the current rate environment.
According to Mozo money and finance expert Rachel Wastell, “Savers have been quiet winners in the high rate environment, especially those that took advantage of them.” She points out that as term deposit rates soared above 5% in late 2023 and early 2024, savvy Australians who locked in those rates are now enjoying the payoff.
Today, however, the window is narrowing. “Mozo’s data shows over 650 term deposit rate cuts this year,” Wastell notes, with the most significant drops hitting one-year terms in April 2025. Some of the best term deposit rates on Mozo's database now sit around 4.50% from providers like Great Southern Bank, while larger banks have scaled back to rates starting with a three (3).
“Even a 4.50% rate today could look generous in a year’s time,” Wastell warns. She recommends savers act quickly to lock in what remains of the high-rate era – but also encourages a smarter approach: term deposit laddering. This strategy involves splitting your savings across multiple term lengths so that you can benefit from higher rates on longer terms while maintaining regular access to maturing funds. It’s a way to maximise returns without sacrificing flexibility.
Wastell also advises Aussies who may opt for a savings account to compare providers and read the fine print. “Don’t stick with the same bank out of habit… and if your savings account advertises a high rate, make sure you check the conditions – you may not actually be earning it.”
Though the high-rate peak has passed, term deposits remain a low-risk option for guaranteed returns. “There’s definitely still value out there,” Wastell says, “but savers have to work for it.”