Is 2024 a good time to lock in a term deposit rate?
After a cycle of very rapid interest rate rises that began in 2022, Australians can now get term deposit rates of around 5% or just below that. These are the highest that rates have been in many years.
And at the moment it looks like rates are going to stay where they are. The main reason rates have risen is to combat inflation. But as inflation slows down it looks like rates could start to fall later in the year (or early next year).
Of course, it's impossible to "time the market" when it comes to things like interest rates.
Please compare CBA, Bankwest, Westpac, NAB, ANZ for FTD for $1.4M for 6 months?
Hi Mike,
Thank you for your inquiry.
Based on your preferred amount and term duration, you may find the best term deposit account for you by checking the list of accounts on this page. Use our comparison table to get a better overview of what each account offers.
I hope this information has helped.
Cheers,
Harold
hello Staff
Your Term Deposit comparison page lists interest payments in the last column . You list some banks as paying up to $1375 , others $1000 where do these calculations come from.I am looking at term deposits but some at 3% pay more interest while some at 3.20% pay less in your last column.
Thanks for your help
F Young
Hi Frederick,
Thanks for your question.
The given figures in the last column of our comparison table above is based on a term deposit of $100,000 on a 6 month term. You can change those details in our term deposit calculator just above the table.
Cheers,
Anndy
If you take a term deposit as a couple then two more term deposits as individuals does this mean you would be payed out three times under the 250k guarantee
Hi Ian,
Thanks for your question.
The Australian Government guarantees deposits up to $250,000 and this cap is per person and per Authorised Deposit-taking Institutions (ADIs).
For joint accounts, each person is entitled to an individual guarantee of $250,000. If you maintain several deposit accounts jointly or as individuals in one bank, the cap of $250,000 applies.
For more information, please read more about Australian Government Guarantee scheme.
Cheers,
Anndy
I am a New Zealand resident, but have accounts with Westpac.au.
When I phone Westpac .au from NZ to try and establish a term deposit using funds from my au account, they say I can’t without an Australian address.
Is there any way I can establish a term deposit in Australia from NZ?
Hi Rob,
Thanks for your question.
You can open a term deposit with Westpac in Australian from New Zealand. The best way to open one while overseas is over the phone and then you will be able to manage your Term deposit online.
Hope this helps.
Clarizza
I would like to know if or when the interest rates reach 0 or below 0, what happens to my term deposits in my bank.
This is in relation to my previous question, and probably didn’t ask the right way.
I would basically like to know as a “What if” scenario: If interest rates hit 0 and I have to renew my term deposit of say $20k in 7 days. Is it worth it, or what are my other options or concerns. Its not like I can keep that much money home. Interest rates keep going down and it doesn’t do much for trying to save, it seems the only people are benefiting are the ones spending money, not saving.
Hi Elizabeth,
Thanks for your question.
Assuming that interest rates hit zero and you were about to renew your term deposit, it is likely that you’ll get a rate that is close to zero.
For this reason, if it does happen, you may want to consider investment alternatives, like shares, managed funds, bonds, etc
If you would like to discuss your personal situation, we recommend that you speak to a financial adviser.
Hi Elizabeth,
As term deposit rates are generally fixed, your term deposit rate will remain the same even during the fixed period if interest rates reach 0. You can refer to our RBA cash rate page to keep up with ongoing announcements.
Cheers,
Clarizza