$0 Account keeping fees
Loyalty bonus rate of 0.10% p.a. available when reinvesting
Small minimum investment of $1,000
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Term deposit rates are currently at record lows, and unfortunately there's no way to know for sure when they'll increase. We do know that a few things need to happen before banks start to lift their term deposit rates, including:
The main reason term deposit rates are so low is because the official cash rate (which is set by the RBA) is also at a record low. As of December 2021, the cash rate is just 0.10%. This is down from 1.50% in August 2016, which at the time was also a record low.
This has forced banks to lower their home loan rates, which are also at record lows. Because banks are making less money in interest from mortgages with rates so low, they've had to reduce the interest paid out to people with term deposits.
Finder analysis found that term deposits were delivering an average rate of return of 2.45% to Australian savers in early 2017. That was the lowest average return on record since 2002, when the RBA first started collecting this type of data. And compared to rates today, a rate over 2.00% p.a. looks very competitive!
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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 are great news for home loan borrowers, they mean that savers are forced to accept minimal returns on their term deposit investments. This is because, when banks reduce the amount of interest customers need to pay on their home loan, they need to make up for this elsewhere so savings accounts are cut back.
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:
There are several factors that have an influence on how banks set their term deposit rates in addition to the cash rate, including:
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:
Earn a special fixed interest rate for terms of 1 or 2 years in length when you invest at least $25,000.
Earn a fixed interest rate on a wide choice of terms with a Gateway Bank personal term deposit.
Earn a competitive fixed interest rate on Citibank term deposit when you invest $10,000 or more.
Earn a competitive interest rate plus bonus interest when you roll over your deposit into a new term deposit. Terms from 3 months to 5 years. No fees.
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.
Choose a term from one month to five years and earn a competitive, fixed interest rate on your deposit. This account is for Queenslanders only.
If you struggle to save, you could benefit from a savings account that won’t allow you to withdraw funds.
Find out all about the tax treatment of term deposit interest payments.
Earn a competitive interest rate on deposits over $100,000 and enjoy flexible term lengths with the AMP Bank term deposit.
With high interest rates offered in a variety of different terms, the AMP term deposit could be ideal for both short and long term saving goals.
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