Term deposit interest rates: December 2021
Although some providers increased interest rates over November, not a lot changed for term deposits last month. Of the 90 banks, mutual banks and credit unions we track, 17 decreased rates for at least one of their term deposits and 11 made improvements.
Based on term deposits in the Mozo database, the average interest rate for a $25,000, 1 year term was 0.48% p.a, as of 1 December, 2021. That figure has not gone up or down since the beginning of November and there is little chance that it will change drastically this month.
At the moment interest rates above 1% p.a. are only available with longer terms. So if a higher rate is what you are after, you may have to think about locking your funds away for longer.
Of note, Judo Bank currently offers some of the highest term deposit rates available in the Mozo database. Its 2 to 5 year interest rates currently range from 1.15% p.a. to 1.40% p.a. for deposits between $1,000 and $1 million.
Some other providers that mixed things up recently were Bank Australia, Suncorp and MyState Bank. All three went against the reduction grain by increasing rates for a number of terms. Bank Australia upped its 1, 2 and 3 year term rates by 20 and 30 basis points. Suncorp increased multiple rates, including its 5 year rate by 55 basis points!
To see how interest rates are looking for other financial products in December, check out our interest rate snapshots for home loan interest rates, personal loan interest rates, car loan interest rates and savings account interest rates.