Finder makes money from featured partners, but editorial opinions are our own.

When will term deposit rates go up?

Term deposit rates aren't expected to increase much more through 2024. But there's still a few things you can do to get a better term deposit rate today. 

Over the course of the Covid-19 pandemic, term deposit rates hit record lows. Since then (as at February 2024), they've increased quite dramatically as the RBA tries to steady the economy and put pressure on high inflation. Term deposit rates have largely increased due to a few factors, including:

  • The Reserve Bank of Australia (RBA) lifting the cash rate (from a historic low of just 0.10%)
  • Banks and lenders starting to lift their home loan rates

See current term deposit rates

1 - 14 of 181
Name 3 Mths p.a. 4 Mths p.a. 5 Mths p.a. 6 Mths p.a. 7 Mths p.a. 12 Mths p.a. 24 Mths p.a.
Judo Bank Term Deposit
Judo Bank logo
Finder Award$1,000 min. deposit
3 Mths p.a.
5.00%
4 Mths p.a.
-
5 Mths p.a.
-
6 Mths p.a.
5.25%
7 Mths p.a.
-
12 Mths p.a.
5.25%
24 Mths p.a.
5.00%
Go to siteMore Info
Newcastle Permanent Term Deposit
Newcastle Permanent logo
$1,000 min. deposit
3 Mths p.a.
3.50%
4 Mths p.a.
3.50%
5 Mths p.a.
3.50%
6 Mths p.a.
5.05%
7 Mths p.a.
3.80%
12 Mths p.a.
4.80%
24 Mths p.a.
4.00%
Go to siteMore Info
ING Term Deposit
ING logo
$10,000 min. deposit
3 Mths p.a.
4.90%
4 Mths p.a.
4.90%
5 Mths p.a.
-
6 Mths p.a.
5.10%
7 Mths p.a.
4.65%
12 Mths p.a.
5.10%
24 Mths p.a.
4.60%
Go to siteMore Info
BCU Term Deposit
BCU logo
$1,000 min. deposit$999,999 max. deposit
3 Mths p.a.
4.60%
4 Mths p.a.
5.00%
5 Mths p.a.
3.40%
6 Mths p.a.
4.70%
7 Mths p.a.
4.00%
12 Mths p.a.
4.50%
24 Mths p.a.
4.40%
Go to siteMore Info
Bankwest Term Deposit
Bankwest logo
$1,000 min. deposit$10,000,000 max. deposit
3 Mths p.a.
3.75%
4 Mths p.a.
3.00%
5 Mths p.a.
3.00%
6 Mths p.a.
4.25%
7 Mths p.a.
4.00%
12 Mths p.a.
5.00%
24 Mths p.a.
4.40%
Go to siteMore Info
Australian Unity Term Deposit
Australian Unity logo
$5,000 min. deposit
3 Mths p.a.
4.90%
4 Mths p.a.
1.15%
5 Mths p.a.
1.15%
6 Mths p.a.
5.10%
7 Mths p.a.
1.50%
12 Mths p.a.
4.80%
24 Mths p.a.
4.20%
Go to siteMore Info
Great Southern Bank Platinum Plus 55+
Great Southern Bank logo
$5,000 min. deposit$1,000,000 max. deposit
3 Mths p.a.
-
4 Mths p.a.
-
5 Mths p.a.
-
6 Mths p.a.
-
7 Mths p.a.
-
12 Mths p.a.
4.95%
24 Mths p.a.
4.50%
Go to siteMore Info
Judo Bank Business Term Deposit
Judo Bank logo
$1,000 min. deposit
3 Mths p.a.
5.00%
4 Mths p.a.
-
5 Mths p.a.
-
6 Mths p.a.
5.25%
7 Mths p.a.
-
12 Mths p.a.
5.25%
24 Mths p.a.
5.00%
Go to siteMore Info
Great Southern Bank Term Deposit Account
Great Southern Bank logo
$5,000 min. deposit$1,000,000 max. deposit
3 Mths p.a.
4.65%
4 Mths p.a.
2.95%
5 Mths p.a.
5.10%
6 Mths p.a.
4.90%
7 Mths p.a.
3.05%
12 Mths p.a.
4.85%
24 Mths p.a.
4.40%
Go to siteMore Info
Judo Bank SMSF Term Deposit
Judo Bank logo
3 Mths p.a.
5.00%
4 Mths p.a.
-
5 Mths p.a.
-
6 Mths p.a.
5.25%
7 Mths p.a.
-
12 Mths p.a.
5.25%
24 Mths p.a.
5.00%
Go to siteMore Info
Community First Bank 12 month Term Deposit Offer
Community First Bank logo
$50,000 min. deposit$1,000,000 max. deposit
3 Mths p.a.
-
4 Mths p.a.
-
5 Mths p.a.
-
6 Mths p.a.
-
7 Mths p.a.
-
12 Mths p.a.
5.25%
24 Mths p.a.
-
Go to siteMore Info
Interest is paid on maturity and available for new money deposits from $50,000 up to $1 million. Offer available until 31 August 2024.
MyState Bank Online Term Deposit
MyState Bank logo
$5,000 min. deposit$50,000,000 max. deposit
3 Mths p.a.
2.50%
4 Mths p.a.
4.20%
5 Mths p.a.
4.50%
6 Mths p.a.
4.60%
7 Mths p.a.
5.10%
12 Mths p.a.
5.00%
24 Mths p.a.
3.95%
More Info
Community First Bank Term Deposit
Community First Bank logo
$5,000 min. deposit$99,999 max. deposit
3 Mths p.a.
4.35%
4 Mths p.a.
4.35%
5 Mths p.a.
4.35%
6 Mths p.a.
4.60%
7 Mths p.a.
4.60%
12 Mths p.a.
4.75%
24 Mths p.a.
4.75%
More Info
loading
Showing 14 of 181 results

Why do term deposit rates fall with the RBA cash rate?

The cash rate is Australia’s benchmark interest rate, so any changes the RBA makes to this figure are commonly passed on to the products offered by Australian banks. So while the current low rates aren't great news for home loan borrowers, they mean that savers are get a better return on their term deposit investments.

However, it’s worth pointing out that a cut to the cash rate doesn’t necessarily mean lower term deposit rates. Sometimes, banks choose to keep their term deposits rates as they are or, in rare situations, increase their rates. There are several possible reasons behind this move, including:

  • Putting pressure on smaller financial institutions in the term deposit market
  • Generating more funding to cover an increased demand for fixed-rate home loans
  • Providing protection against overseas financial turmoil by reducing reliance on overseas funding sources

What other factors affect term deposit rates?

There are several factors that have an influence on how banks set their term deposit rates in addition to the cash rate, including:

  • What the competition is doing. Australia’s banking industry is highly competitive and the major banks are always looking for ways to steal customers from their rivals. A quick comparison of term deposit rates across the major banks reveals just how competitive the deposit market is, and a bank will consider how its products compare to those offered by other financial institutions when setting rates.
  • The bank’s financial position. If your bank is looking to improve its financial position, it may want to increase the amount of funding it receives from term deposits. In an effort to increase its share of the Australian term deposit market, it might increase the rate it offers on specific term deposits to entice new customers away from its competitors.
  • The global economic climate. Banks also make interest rate decisions based on future economic forecasts. For example, a bank may choose to protect itself from overseas financial turmoil by reducing its reliance on funding from overseas sources and at the same time increasing its funding from Australian deposits. In order to do this, it may raise its term deposit rates relative to the competition.

How to get a better term deposit rate right now

Regardless of the RBA’s official cash rate and average term deposit rates, there are still several things you can do to increase the interest-earning capacity of a term deposit:

  • Shop around. Although average term deposit rates may be at record lows, there’s still a substantial difference between the lowest and highest rates on offer at any given time. With this in mind, it’s essential to compare a range of term deposit options and shop around for the highest interest rate you can find.
  • Look beyond the major banks. Australians have a tendency to remain loyal to their regular bank, which is more often than not a Big Four bank, even if it doesn’t offer the best interest rate. However, some of the best term deposit deals can be found at Australia’s smaller banks, credit unions and building societies, so don’t be afraid to look beyond the Big Four for a good deal.
  • Consider investing for longer. You will typically be able to find slightly higher rates on deposits with longer terms than on those with shorter terms. If it’s convenient for you to lock away money in a term deposit for 12 months or more, you will be able to enjoy higher interest-earning power.
  • Invest a larger amount. The larger the amount of money you have to invest, the higher the interest rate you will receive. Many banks offer tiered interest rates for term deposits – for example, they may offer a base interest rate for deposits of up to $10,000, a slightly higher rate for deposit amounts of $10,000 to $25,000, and a higher rate again on amounts of $25,000 or more.
  • Negotiate. If you’ve got $100,000 or more to invest, many financial institutions may be willing to let you negotiate a better rate. The more money you have to invest, the greater your bargaining power, so don’t be afraid to ask for a better deal.
  • Use a high interest savings account instead. Although current term deposit rates are at record lows, things won’t stay that way forever and rates will rise again at some stage. So rather than locking all your money away in a term deposit for an extended period, it may be worth investing a portion of your funds in a high interest savings account so that you can easily access it if term deposit rates go up.
Tim Falk's headshot
Written by

Writer

Tim Falk is a writer for Finder, writing across a diverse range of topics. Over the course of his 15-year writing career, Tim has reported on everything from travel and personal finance to pets and TV soap operas. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

Alison Banney's headshot
Co-written by

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise
Alison has written 656 Finder guides across topics including:
  • Superannuation
  • Savings accounts, bank accounts and term deposits
  • Budgeting and money-saving hacks
  • Managing the cost of living

More guides on Finder

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