Term deposits August: More interest rate rises predicted
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
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Mozo experts choice awards won:
- Term Deposit - 2024
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.
CompareCompareTerm Deposit
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.
- interest rate
- 5.25% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Judo Bank Term Deposit
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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.
CompareCompareSMSF Term Deposit
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.
- interest rate
- 5.25% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
-
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.
CompareCompareTerm Deposit - Online only
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.
- interest rate
- -
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $1,000,000.00
- Can interest be paid to another bank?
- no
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Bank of Sydney Term Deposit - Online only
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Term Deposit
3.70% p.a.
6 months$5,000
Yes up to $250,000
CompareCompareTerm Deposit
- interest rate
- 4.60% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $1,999,999.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Commonwealth Bank Term Deposit
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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
CompareCompareTerm Deposit
No set up, monthly service or management fees & choose to invest from $5,000 or more
- interest rate
- 4.25% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Westpac Term Deposit
Your selected term deposits
Your selected term deposits
Your selected term deposits
Your selected term deposits
Your selected term deposits
*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
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