Can I negotiate a fixed term deposit rate with the bank?

Spend a little time researching the market to discover if your ideal provider does offer more competitive rates to other customers. Use our list of companies to see the rates that provider is capable of offering. 

Keep in mind that these higher rates may be for different fixed terms, so the provider may encourage you to switch to a different fixed term period to earn this rate. If the term doesn’t suit you, still ask if they will match this rate for your ideal term.

Use our comparison tables to filter down a range of term deposit options by their interest rate. You can also enter details like the deposit amount and fixed term to narrow your results to your own personal needs.  

If your provider is offering you a fixed term deposit rate, and a competitor offers a higher one for the same fixed term, you could consider asking the provider to match this, or at least try to.

Now you can pick up the phone and call the term deposit provider. Advise the representative that you have seen what they’re willing to offer you as an interest rate, but you would like a higher rate. Let the representative know:

• You know they offer higher rates to other customers, and you’d like yours to match; and/or
• A range of competitors are willing to offer you a higher rate. 

If you were willing to move to an alternative fixed rate period to earn a higher rate from your term deposit provider, now would be the time to mention this.

If the representative still won’t budge, advise that you are willing to walk away and they could lose your business. Banks and term deposit providers need your business more than you need theirs, as they use your deposits to help fund areas like writing home loans.

After all, you now have a list of providers who could offer you a higher rate on your term deposit if you are an eligible applicant. If your provider won’t play ball, consider switching to a more competitive option when your current term deposit (if any) reaches maturity.

Just as you might negotiate a lower home loan rate with your bank, you also may have the opportunity to try and secure a higher interest rate on your term deposit. However, there is a key factor that can impacts your success: your deposit size.

If you have a deposit of $100,000 or more, your lender may be more likely to offer you a higher interest rate. Even though this means paying more to you, having a large deposit in its books is beneficial to the bank as well. The larger your deposit amount, the greater your negotiating power.

That being said, even if your deposit is lower than $100,000, it may be worth a discussion with your bank. You never know when a provider may feel like being generous to encourage you to become a customer. 

Negotiating with your bank could secure you a higher fixed rate, which will earn you extra interest over your term. You may also discover bonuses or special offers you can acquire through your bank.