Where to put your savings in 2020

Niko Iliakis

24 Jan 2020

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2020 isn’t shaping up to be a great year for Aussie savers. Last year’s three RBA rate cuts left savings accounts across the board looking pretty worse for wear, and with official interest rates expected to drop to 0.25% this year, it’s going to get harder and harder to find one that offers worthwhile returns.

While term deposits haven’t been spared all that much either, they might still represent better value for serious savers. Plus by locking in a rate, you’ll be able to ensure consistent earnings if official interest rates drop even further. Below, we’ve compiled just a handful of term deposits that are worth a look.

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Judo Bank Term Deposit
  • 2.20% rate for a 3 year term

  • 2.40% rate for a 5 year term

  • Interest payable to another bank

Judo Bank has made quite a name for itself in recent months by offering some of the most generous rates on the market. In fact, of the 94 term deposits tracked by Mozo, only Judo Bank’s offer rates above 2.00% p.a. While the rates available on shorter terms are quite impressive, lengthier terms are where the real value is. Lock in your savings for a year or more and you’ll be looking at rates between 2.00% p.a. and 2.40% p.a. What’s more, you’ll receive a 0.10% loyalty bonus on top of the standard rate if you choose to reinvest your balance once it reaches maturity.

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UBank Green Term Deposit
  • 1.60% p.a. interest rate for 6 month terms

  • Balances matched and invested in climate-friendly initiatives

  • 0.10% loyalty bonus

The UBank Green Term Deposit is an appealing option for those who want more of a say in how banks use their money, and who’d prefer it was used to further worthwhile causes. Whatever your balance, it will be matched by NAB and used to fund renewable energy projects, such as wind and solar energy, low carbon transport, and low carbon buildings. And you can also be confident you’ll be earning decent returns on your savings too. On 5, 7 and 8 month terms, you’ll be looking at interest rates of 1.60% p.a.

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Citi Term Deposit Special
  • Special rate of 1.80% for 3 months ($250,000 minimum deposit)

  • Great for stashing large lump sums of savings

The Citi Term Deposit offers tiered interest rates depending on the size of your balance, with amounts of between $250,000 and $2,000,000 earning a competitive 1.80% p.a. in interest. That means if you’ve received a large sum as part of an inheritance, property sale, or insurance payout, the Citi Term Deposit Special could be just the place to park it while you decide how it’s going to be spent. Just keep in mind that only 3 and 6 month terms are available, and interest isn’t payable to other banks.

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UBank Term Deposit
  • 1.70% p.a. for a 6 month term

  • 0.10% loyalty bonus at renewal

  • Interest payable to another bank

The UBank Term Deposit is another savings friendly offering from the online bank. On 3, 4 and 6 month terms you’ll earn 1.70% p.a. in interest, and you can opt to have that paid into another bank account if you wish. What’s more, if you’re happy to renew your term deposit once it reaches maturity, the 0.10% loyalty bonus that’s added to the existing interest rate will also go a long way towards growing your balance.

Looking for more places to keep your savings? Visit our term deposit and savings account comparison pages for a look at what’s currently available.

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