Fix before they fall: Best term deposit rates for May 2025
Term deposit rates are set to fall further if the RBA cuts the cash rate in May, but there's still time to lock in a fixed rate over 4.50% p.a.
If the RBA cuts the cash rate at it's meeting in May, which it is widely predicted to do, we will likely see rates for term deposits and savings accounts drop too.
There are even some predictions that the RBA will drop the cash rate by double the usual amount, with NAB expecting a cut of 0.50% instead of the standard 0.25%.
Savings account rates are variable, so unfortunately when rates go down there's not too much you can do about it (other than continue to compare and switch to a high interest savings account with a better rate).
But term deposits offer fixed rates, meaning they're locked in for the life of the term even if the bank lowers rates.
If you're looking for a set-and-forget option for your cash, it could be a smart move to lock in a term deposit rate now before the RBA makes further cuts to the cash rate. Here are some of the best term deposit rates on offer.
Want to lock in a high rate?
Compare term deposits and secure a great fixed rate before they fall further.
Best 3-month term deposit rates
- 4.35% with Judo Bank
- 4.4% with BNK Bank
- 4.4% with Gateway Bank
- 4.25% with G&C Mutual Bank
Best 6-month term deposit rates
- 4.55% with Unity Bank
- 4.55% with G&C Mutual Bank
- 4.55% with Heartland Bank
Best 12-month term deposit rates
- 4.25% with Unity Bank
- 4.25% with G&C Mutual Bank
- 4.25% with Heartland Bank
Best 2-year term deposit rates
- 4% with alex bank
- 3.9% with Qudos Bank
- 4.05% with Judo Bank
Best 5-year term deposit rates
- 4.4% with Rabobank
- 4.45% with Judo Bank
- 3.7% with G&C Mutual Bank
Want to earn more interest on your cash in the bank? Compare high interest savings accounts and term deposits and switch to one with a better interest rate.
Ask a question