Last chance to lock your interest rate? ING, Judo among top offers as term deposits tumble 

Posted:
News
ManWithMoney_Canva_1800x1000

Banks have already started to cut the fixed interest rates on term deposits ahead of a potential RBA rate cut this month.

If you've been thinking about opening a term deposit, you'd better be quick.

Banks have already started to drop the interest rates offered on their term deposit accounts in anticiption of a cut to the RBA's cash rate, thanks to inflation falling.

Falling rates are great news for home owners, but not so great for savers looking to earn a return on their cash.

Judo Bank has already dropped its 12-month term deposit rate by 15 basis points from 5.00% p.a. to 4.85% p.a. over the last month.

ING has dropped its 12-month term deposit rate by 25 basis points over the past month, from 4.95% p.a. to 4.70% p.a.

If you're keen to lock in a decent fixed rate on your cash here are some of the top offers right now.

3-month term deposit offers

  • 4.95% p.a. with Bank of Sydney
  • 4.90% p.a. with ING

Bank of Sydney currently offers the highest rate for a personal 3-month term deposit at 4.95% p.a.

ING is right behind, offering 4.90% p.a. on its 3-month term deposit, for balances over $10,000.

6-month term deposit offers

  • 5.10% p.a. with Bank of Sydney
  • 5.05% p.a. with Gateway Bank
  • 5.00% p.a. with MyState Bank
  • 4.95% p.a. with Judo Bank

Bank of Sydney once again offers the highest rate for 6-month terms, with a competitive 5.10% p.a, followed by Gateway Bank with 5.05% p.a.

MyState currently offers 5.00% p.a. for balances of just $5,000 all the way up to $50 million.

Judo Bank offers a competitive 4.95% p.a. on its 6-month term. Judo Bank was the 2024 winner of Finder's term deposit award, as it consistently had one of the highest rates in the market while also offering an extra 0.10% p.a. loyalty bonus for repeat terms.

12-month term deposit offers

  • 5.00% p.a. with Orange Credit Union
  • 4.90% p.a. with Illawarra Credit Union

The credit unions are taking the lead with 12-month rates at the moment, with Orange Credit Union offering a high 5.00% p.a. followed closely by Illawarra Credit Union at 4.90% p.a

Once the cash rate drops, banks will start to drop the rates offered on savings accounts too. There's not too much you can do about that (other than compare accounts!), but with term deposits you still have time to lock in a fixed rate before they drop too much lower.

Compare current term deposit rates to lock in a fixed return on your cash before the rates drop even lower. Not keen to lock away your cash? Compare high interest savings accounts instead.

All rates listed in this article were true at time of publication, and may have changed since.

Ask a question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms Of Service and Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site
0d, 0hrs, 0m - 73% predict RBA rate cut
Attention! Bank rates have changed
FIND OUT MORE