Term deposits August: More interest rate rises predicted

Two women stand smiling, looking at a mobile phone.

With the Reserve Bank keeping the cash rate at 0.10%, interest rates have had a little time to breathe.

At the end of 2020, Mozo counted nearly 800 term deposit interest rate cuts in just one month! Now with things a little steadier that number has reduced dramatically. Cuts to term deposits tracked in the Mozo database fell to 125 in June and 114 in July.* 

The scales start to tip

While cuts are decreasing, interest rate increases seem to be on the rise. In June nine providers listed in Mozo’s database increased 28 term deposit interest rates. In July those numbers rose to 15 providers and 49 term deposit interest rate increases.* 

It would seem that the scales are slowly beginning to tip for term deposits - from cuts to rises. If this trend continues, we can expect to see even more providers raising term deposit rates in August.

Some providers who increased term deposit interest rates in July were:

  • AMP Bank
  • Bank of Melbourne
  • Bank SA
  • Endeavour Mutual Bank
  • Firstmac
  • Judo Bank
  • The Mutual Bank
  • Newcastle Permanent 
  • Queensland Country Bank
  • Rabobank
  • Southern Cross Credit Union
  • Suncorp
  • St George
  • Sydney Mutual Bank
  • Westpac

Newcastle Permanent and Rabobank made some of the biggest term deposit interest rate increases. Both increased 5-year term deposits by 55 basis points!

Top term deposits right now

For months now Judo Bank has been taking out the top spots in the Mozo database for longer term deposits. It’s unlikely that that will change in August. Here are Judo Bank’s current competitive term deposit interest rates:

  • 1-year term deposit - 0.99% p.a.
  • 2-year term deposit - 1.20% p.a.
  • 3-year term deposit - 1.15% p.a.
  • 4-year term deposit - 1.40% p.a.
  • 5-year term deposit - 1.60% p.a.

BankVic still monopolises most of the top spots in the Mozo database for terms under one year. Although after its interest rate increases, AMP Bank now takes out the top spot in the Mozo database for 11-month terms. Its interest rate for that particular term is currently 0.75% p.a.

To summarise, things are looking up for term deposits. If you’re interested in this fairly low-risk investment, head to Mozo’s compare term deposits page to see what options are available. Or, alternatively take a look at the terms on offer below.

Compare term deposits - last updated 26 May 2024

Search promoted term deposits below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Term Deposit

    5.00% p.a.
    1 year

    $1,000

    Yes up to $250,000

    Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)

    Compare
    Details
  • Online Term Deposit

    5.00% p.a.
    1 year

    $5,000

    Yes up to $250,000

    No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.

    Compare
    Details
  • Term Deposit

    4.90% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Competitive fixed rates across investment terms ranging from 1 month to 5 years. No set up or establishment fees. $1000 minimum investment.

    Compare
    Details
  • 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.

    Compare
    Details

*Averages calculated using data available in the Mozo database, correct as of 30 July 2021.

* 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.