Term deposits in October: AMP Bank moves upwards on rates while Judo lowers 1 year term

As we head into October, the news for Australia’s savers is that term deposit interest rates continue to remain steady, though we are starting to see some movement and competition for some shorter terms. 

The average interest rate for a $25,000 1 year term deposit based on the accounts we track in the Mozo database currently sits at 0.48% p.a.** This figure has decreased marginally from what it was a few months ago and has stayed around the 0.50% mark since April this year.**

Big banks increase term rates ahead of Halloween

Ahead of the spooky season, a number of big banks have actually increased their term deposit interest rates. Freaky we know. It might have something to do with banks anticipating an increase to the cash rate in a few years time or it could just be supernatural forces at play?

Whatever the reason, the recent increases have changed things up a bit in the Mozo database. For one, AMP Bank has made numerous rate increases (some by as much as 35  basis points) that have seen it climb to the top of Mozo’s term deposit table for a number of shorter terms. Some of AMP’s more competitive term deposit interest rates right now are:

• 0.65% p.a. for 5 and 7 month terms
• 0.75% p.a. for 8 and 10 month terms
• 0.80% p.a. for 11 month term

In addition to AMP, other big banks that made term deposit interest rate increases included Bank of Melbourne, BankSA, Westpac and St George Bank. Although a number of these banks also made interest rate cuts. 

Judo Bank drops out of top spot for 1 year term

Although there were considerably fewer cuts to term deposit rates than the beginning of 2021, Mozo’s research team did count a number of term deposit interest rate decreases in September and these recent cuts have led to a shake up in the leader’s table as we head into October.

Most notable of the changes was Judo Bank, shaving 20 basis points off its 1 year term, which now sits at 0.75% p.a.** The top spot for a 1 year term in the Mozo database is now held by MyLife MyFinance, which currently offers a rate of 0.85% p.a.** 

BankVic also dropped out of its previously held top spots for 4, 5 and 7 month terms by dropping its rate from 0.70% p.a. to 0.45% p.a.**

Top longer term rates

While it no longer holds the top spot for 1 year terms, Judo Bank has maintained its top spots for all other long terms in the Mozo database. Rates for its other long terms are currently:

• 1.20% p.a. for a 2 year term
• 1.15% p.a. for a 3 year term
• 1.40% p.a. for a 4 year term
• 1.60% p.a. for a 5 year term 

Additional interest earning options

If you are interested in finding other savings options for your money, you can compare high interest savings accounts or check out our compare term deposits page that has additional information about choosing a term deposit. If you’re ready to get started, check out some of the 1 year terms on offer below.

**Averages calculated using information available in the Mozo database, correct on 30 September 2021.