Term deposits in September: Less interest rate cuts predicted

Spring blossoms against blue backdrop.

There is little chance that term deposit interest rates will change dramatically in September. Mozo has counted less and less term deposit rate cuts in the past few months. 

Averages also haven’t moved much. Based on term deposits tracked in the Mozo database, the average interest rate for a $25,000, 1 year term deposit is currently 0.49% p.a.** This isn’t too different to the average in the previous few months, which stood at around 0.50% p.a.**

Cuts continue to dwindle

There seems to be a light at the end of the tunnel for term deposits. The number of rate cuts has dwindled over the past few months and will likely continue to do so in September. Mozo counted 125 term deposit rate cuts in June, 114 in July and just 69 in August. 

On the flip side, Mozo has also counted a number of interest rate rises. Goldfields Money made the biggest number of term deposit rate increases, improving rates for both its shorter and longer terms. It increased rates by as much as 45 basis points for its four and five month terms and 50 basis points for its two year term!

Judo Bank still on top

Speaking of cuts, despite lowering the interest rate on a few of its offerings - Judo Bank is still taking out the top spot in the Mozo database for all longer terms. The bank’s current competitive rates are:

  • 1 year term deposit - 0.95% 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.

Or if you’re after a term to see you through the rest of 2021, BankVic currently offers competitive rates for a number of shorter terms. Its four, five and seven month terms are currently taking out the top spot in the Mozo database with each offering a 0.70% p.a. interest rate.

Want to see what other term deposits Mozo reviews? Head to our compare term deposits page for a longer list of options. Or keep scrolling to check out the interest rates below.

Compare term deposit interest rates - last updated 8 December 2023

Search promoted term deposits below or do a full Mozo database search . Advertiser disclosure
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**Average interest rates calculated using information available in the Mozo database, correct as of 31 August 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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