Historical term deposit interest rates
Term deposit rates on average have fallen significantly over the past 3 decades, as we can see with these historical rates.
Key takeaways
- Average term deposit rates dropped from a peak of 14.90% p.a. in 1990 to 2.15% p.a. in July 2016.
- Track RBA Cash Rate movements, as bank term deposit interest rates typically move in the same direction.
- Compare current 12-month term deposit rates across major banks to lock in fixed returns up to 5.3% p.a.
Looking at historical term deposit rates can help you understand that rates are constantly changing and how the official cash rate also impacts term deposit rates. As the official cash rate has continued to fall over the last decade, so too have term deposit rates.
Historical term deposit rates
Let's take a look st some examples of old term deposit rates offered by Australia's biggest four banks, and how that compares to their rates now.
National Australia Bank (NAB)
Here are some of NAB's Term Deposit rates from 2011 through to 2014, and now.
| Date | 6 month term | 12 months | 2 years |
|---|---|---|---|
| 6/6/11 | 6.11% p.a | 6.18% p.a. | 6.30% p.a. |
| 2/1/12 | 5.75%.p.a. | 5.24% p.a. | 5.21% p.a. |
| 4/6/12 | 4.97% p.a. | 5.00%p.a. | 5.10% p.a. |
| 7/1/13 | 4.40% p.a. | 4.25% p.a. | 4.40% p.a. |
| 3/6/13 | 3.98% p.a. | 4.00% p.a. | 4.20% p.a. |
| 6/1/14 | 3.70% p.a. | 3.75% p.a. | 3.90% p.a. |
| Current rates | 3.5% | 5.3% | 5% |
Australian New Zealand Bank (ANZ)
Here are some of ANZ's Term Deposit rates from 2011 through to 2014, and now.
| Date | 3 months | 12 months | 3 years |
|---|---|---|---|
| 6/8/11 | 5.60% p.a. | 6.00% p.a. | 6.20% p.a. |
| 20/3/12 | 5.30% p.a. | 5.00% p.a. | 5.30% p.a. |
| 10/10/13 | 2.50% p.a. | N/A | 3.30% p.a. |
| 25/4/14 | 2.50% p.a. | N/A | 3.30% p.a. |
| Current rates |
Westpac
See past Westpac's term deposit rates and the current rates.
| Amount $5,000 - $10,000 | 3 months | 12 months | 3 years |
|---|---|---|---|
| 19/7/14 | 2.50% p.a. | 3.30% p.a. | 3.70% p.a. |
| Current rates | 3.25% | 4.75% | 4% |
Commonwealth Bank of Australia (CBA)
See past CommBank's Term Deposit rates and the current rates.
| Amount $10,000 - $49,999 | 2 months | 12 months | 5 years |
|---|---|---|---|
| 15/12/12 | 4.20% p.a. | 4.25% p.a. | 4.50% p.a. |
| 22/5/2013 | 3.90% p.a. | 3.95% p.a. | 4.50% p.a. |
| Current rates | 1.7% | 4.9% | 3.95% |
Average term deposit rate history
Overall, rates have fallen significantly since 1985. Compare the current rates in the table above to see where they sit today.
| Year | January | July |
|---|---|---|
| 1985 | 11.95% p.a. | 12.50% p.a. |
| 1990 | 14.90% p.a. | 13.95% p.a. |
| 1995 | 8.50% p.a. | 7.00% p.a. |
| 2000 | 5.45% p.a. | 5.85% p.a. |
| 2005 | 4.65% p.a. | 4.75% p.a. |
| 2010 | 5.95% p.a. | 6.00% p.a. |
| 2011 | 6.15% p.a. | 6.00% p.a. |
| 2012 | 5.00% p.a. | 4.40% p.a. |
| 2013 | 4.15% p.a. | 3.70% p.a. |
| 2014 | 3.35% p.a. | 3.30% p.a. |
| 2015 | 3.05% p.a. | 2.40% p.a. |
| 2016 | 2.20% p.a. | 2.15% p.a. |
See how historical term deposit rates compare to the rates of October 2026 below
Yes, rates on term deposits are nothing like they used to be. However, term deposits are still one of the safest, low-risk ways to invest your cash when you're not using it.
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How we picked these
Finder Score for term deposits
Finder Score assigns Term Deposit products a score out of 10, comparing interest rates and features, to make comparison easier. We assess over 150 products from more than 90 providers, assessing products across different terms to determine an average score per product.
Why are the historical rates so high compared to now?
Interest rates usually follow a similar pattern to the Cash Rate, determined by the Reserve Bank of Australia at its Monetary Policy Board meetings, which are held on dates the RBA publishes in advance. When the cash rate is low, it's cheaper for the banks to borrow from the Reserve Bank of Australia. Therefore, banks don't have an incentive to offer savers a high interest rate, because it's easier for them to source their funds from the Reserve Bank of Australia.
Also, when the Cash rate is low banks also have lower home loan rates, meaning they're making less money from interest repayments on mortgages. With less money coming in from mortgages, there's less money to pay out on things like term deposits and savings accounts.
A low cash rate usually means that loan interest rates are lower than usual. So now could be a good time to refinance your home loan.
Will interest rates for term deposits will always be relatively low?
No, the Cash Rate is reflective of the state of the economy. For example, a low cash rate signals a slow economy, as the Reserve Bank is trying to encourage businesses to borrow funds for investment, which in turn will theoretically expand the economy. As the economy slowly regains its pace, the cash rate will rise as a result, and in effect, so will term deposit interest rates (eventually). However, mortgage rates will rise before term deposit rates do.
Looking for something to do with your cash? You'll find better interest rates on high interest savings accounts, and don't need to lock your money away for a set period of time. Or, if you are looking for a long-term growth you could consider investing in shares, investing in an index fund or topping up your super fund.
Sources
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