Term deposit rates falling: Why it’s not too late to lock in and ladder your savings

By Peter Terlato · · 2 min read
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Woman on phone making term deposit

This week, the Reserve Bank of Australia (RBA) delivered its second modest rate cut of the year, signalling a clear downward trend in interest rates. While this might seem like bad news for savers, there’s still time, and strategy, to make the most of what’s left on the table.

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.”

Compare a range of term deposit and savings accounts below

  • Term Deposit

    Best rate
    4.55 % p.a.
    for 4 months
    ($5,000 to $1,000,000)
    Next best option
    4.50 % p.a.
    for 6 months
    ($5,000 to $1,000,000)
    Go to site
    • Minimum $5K investment
    • Open account in as little at 5 mins
    • Interest paid at maturity for terms less than 1 year

  • Term Deposit

    Best rate
    4.55 % p.a.
    for 6 months
    ($1,000 to $2,000,000)
    Next best option
    4.45 % p.a.
    for 5 years
    ($1,000 to $2,000,000)
    Go to site
    • 0.10% added loyalty bonus at renewal
    • Option to have interest paid to another bank
    • Winner of the Mozo Experts Choice Awards 2025^ for Term Deposits.

  • Savings Maximiser

    Maximum rate
    5.00 % p.a.
    (for $0 to $100,000)
    Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.
    Standard rate
    0.05 % p.a.
    (for $0 and over)
    Go to site
    • Zero ING fees to pay
    • Move money easily via app
    • Experts Choice Awards Highly Commended Everyday & Savings Bank 2025^

  • High Interest Save Account

    Maximum rate
    4.85 % p.a.
    (for $0 to $100,000)
    Deposit at least $500 to either Spend, Bills or Save account from an external source each month.
    Standard rate
    0.00 % p.a.
    (for $0 and over)
    Go to site
    • No monthly fees on any of your save accounts
    • Split your money with up to 10 Save accounts.
    • Set savings targets and track on the app

* 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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Today's term deposit rates