Is 2024 the year to fix your savings? What sorts of rates are available

By Cameron Thomson · · 2 min read
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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

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 93 term deposits.
Last updated 23 November 2024 Important disclosures
  • Term Deposit

    5.15% 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.

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  • Standard Term Deposit

    4.90% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Invest from as little as $1000. No monthly fees. Interest is paid at maturity. Range of terms available from 1 month to 3 years. Manage via online banking or via app.

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  • SMSF Term Deposit

    5.15% 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.

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  • Term Deposit

    4.00% p.a.
    6 months

    $5,000

    Yes up to $250,000

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  • Term Deposit

    3.60% p.a.
    6 months

    $5,000

    Yes up to $250,000

    No set up, monthly service or management fees & choose to invest from $5,000 or more

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  • Term Deposit

    3.60% p.a.
    6 months

    $1,000

    Yes up to $250,000

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  • Advance Notice Term Deposit

    3.50% p.a.
    6 months

    $5,000

    Yes up to $250,000

    A higher competitive fixed interest rate than comparable ANZ Term Deposits. You will need to give ANZ 31 days notice if you wish to withdraw the money prior to maturity. With a minimum investment of $5,000 you can enjoy the certainty of fixed returns over your investment term

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* 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.

Today's term deposit rates