Terms between 3 months and 5 years
$1000 minimum deposit
0.10% p.a. loyalty bonus when you roll over your term deposit
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.
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.
Here are some of Nab 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.|
Here are some of ANZ 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.|
See past Westpac 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.|
See past Commbank 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.|
Overall, rates have fallen significantly since 1985, and are at record low levels today.
|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||2.45% p.a.||2.35% p.a.|
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.
Interest rates usually follow a similar pattern to the Cash Rate, determined by the Reserve Bank of Australia on the first Tuesday of every month (except for January). 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.
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 while rates are so low? 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.
Earn a competitive interest rate on terms between 1 month and 2 years with a Challenger term deposit.
This account offers fixed interest rates for terms ranging from one month to five years, so you can enjoy secure, guaranteed returns on your business funds.
With competitive interest rates and terms ranging from 3 to 24 months, a MOVE Bank Term Deposit can help you reach your financial goals.
Passively watch as your money grows in a high interest earning term deposit from BankVic
A variety of terms to choose from along with interest payment options make the P&N Bank Term Deposits worth a closer look.
Take control of your super with a flexible account that allows you to manage all of your needs in one convenient place.
Give your money the benefit of a high interest savings account boost with a flexible term deposit that allows you to structure the terms to meet your needs.
You can grow your savings quickly and easily by locking them into a term deposit from Rural Bank.
With its relatively low opening balance, IMB’s term deposit could make it easy for Australians to begin making a positive investment towards their financial future.
Bendigo Bank term deposits can give you easy means to save for a short or long term goal. Though, you can find other similar offerings out there, so compare a few before deciding.