Is 2024 the year to fix your savings? What sorts of rates are available
After seeing a meteoric climb in interest rates, the RBA ended last year with a Christmas rate hold. Now many economists predict that the official rate is likely to come down in the second half of 2024.
One way savvy savers can make the best of this situation is by fixing their rates with a term deposit. These accounts allow customers to get the advertised interest rate for a set period (anywhere from 3 months up to five years).
But first, let’s check some other economic factors
- Global trends: The global economy has a significant impact on interest rates. Goldman Sachs predicts that the US Federal Reserve will cut interest rates starting in March, which would affect the Reserve Bank of Australia’s (RBA) own decision regarding rates.
- Inflation: Inflation erodes the real value of saved money. Generally, the consumer price index (CPI) is used as an indicator of inflation. The Australian Bureau of Statistics (ABS) reported that CPI for the 12 months to 30 November 2023 was 4.3%. This is close to half the reported 8.4% for the 12 months to 31 December 2022.
- Central Bank Policies: The RBA sets the cash rate, influencing the rates banks offer to savers. Any changes in these policies directly impact savings and term deposit rates.
Altogether, central bank policies and a resilient global economy mean that the likelihood of rate cuts later in the year is more likely than before.
Term deposit rates by category
So term deposits could be a good option for savers looking to maintain higher rates. However, there are a couple of things to keep in mind. For instance, term deposits will usually come with a minimum deposit requirement (e.g. $1000 or $5000) as well as a maximum.
Some restrictions can also affect the rate that you get. An example of this would be a choice of interest paid monthly, annually, or at maturity. Providers tend to lower the interest rate for anything lower than maturity to offset compound interest.
So with these factors in mind, these are some of the highest rates on the Mozo database for each term:
Provider | Term | Rate |
Family First Bank Special Term Deposit | 3 Month | 4.95% p.a. |
Australian Military Bank Investment Plus Term Deposit | 6 and 8 Month | 5.15% p.a. |
Challenger Term Deposit | 12 month | 5.35% p.a. |
The Mutual Bank Term Deposit | 2 and 3 year | 5.20% p.a. |
Judo Bank Term Deposit | 4 year | 5.00% p.a. |
Rabobank Term Deposit | 5 year | 5.10% p.a. |
*correct as of 18 January 2024
Also bear in mind that, even though these rates are fixed when you make your deposit, they can change before then.
Want to check out more providers? Then check out our term deposit comparison page or have a look at some of the providers in the list below…
Term deposit comparisons on Mozo - last updated 2 May 2024
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Featured Product
Term Deposit
5.10% 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
- 5.10% p.a.
- 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?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Judo Bank Term Deposit
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Mozo experts choice awards won:
- Term Deposit - 2024
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)
CompareCompareTerm Deposit
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)
- interest rate
- 5.00% 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?
- no
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Rabobank Term Deposit
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SMSF Term Deposit
5.10% 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
- 5.10% p.a.
- 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?
- yes
- Automatic rollover
- yes
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Term Deposit
4.80% p.a.
9 months$1,000
Yes up to $250,000
Enjoy the certainty of a fixed interest rate combined with the convenience of online banking to set up and manage your term deposit at maturity. You can start investing from as little as $1,000 or up to $5,000,000.
CompareCompareTerm Deposit
Enjoy the certainty of a fixed interest rate combined with the convenience of online banking to set up and manage your term deposit at maturity. You can start investing from as little as $1,000 or up to $5,000,000.
- interest rate
- 4.75% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $10,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Bankwest Term Deposit
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Online Term Deposit
5.00% p.a.
7 months$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.
CompareCompareOnline Term Deposit
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.
- interest rate
- 4.80% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $5,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the MyState Bank Online Term Deposit
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Term Deposit
4.95% p.a.
6 months$5,000
Yes up to $250,000
Secure a guaranteed rate of return with a Great Southern Bank Term Deposit. Pay $0 monthly account fees. Choose your own terms from one month to five years. Manage your term deposit conveniently online. protected by the Australian Government's guarantee on deposits.
CompareCompareTerm Deposit
Secure a guaranteed rate of return with a Great Southern Bank Term Deposit. Pay $0 monthly account fees. Choose your own terms from one month to five years. Manage your term deposit conveniently online. protected by the Australian Government's guarantee on deposits.
- interest rate
- 5.00% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $1,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Great Southern Bank Term Deposit
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