Best term deposits for December 2020

In a low-rate environment, it can be hard to know where to find a competitive term deposit account. And after three cuts to the Reserve Bank of Australia’s (RBA) cash rate this year, many savers may need a helping hand finding their next term deposit. 

Term deposit interest rates have fallen significantly this year, but hope is not lost. RateCity research found that since the last RBA cash rate cut in November, six lenders hiked rates across a range of term deposit terms and payment frequencies.

Meanwhile, only two savings account providers hiked rates in this same time frame, with several providers – including CommBank -- actually cutting rates more than once. 

There are a range of reasons why term deposits are still a valuable investment option as we move into 2021. But to find a competitive interest rate, savers may need to do a little research.

This is where RateCity comes in. RateCity’s Real Time Ratings™ system takes the hassle out of finding the top-rated term deposit accounts by doing the work for you. Real Time Ratings™ gives every term deposit in our database a rating out of five, dictated by interest earned and flexibility. 

The rankings are calculated daily so, unlike other comparison websites, you’re getting the most up-to-date rating on your term deposit options. This has allowed us to create our term deposit leaderboard, which showcases the most competitive term deposit accounts as determined by Real Time Ratings™.

Best 12-month term deposits

If the last year has taught us anything it’s that no one can predict the next twelve months. But you can predict a return on your nest egg with a competitive 12-month term deposit.

Best 3-year term deposits

It may be years before the cash rate rises again, so ride out this current low-rate environment with a competitive interest rate for three years.

Best 5-year term deposits

Lock in a long-term interest rate and get a return that’s generally ‘safe as houses’ in an otherwise uncertain market.

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