Best term deposits for October 2020

With another Reserve Bank of Australia (RBA) led cash rate cut tipped for November, could now be the time to lock in a competitive term deposit rate?

Term deposit rates have been slashed to record lows over the last year. RateCity research has found that since the start of October, 33 term deposit providers have slashed interest rates, including ANZ, Westpac and CBA.

And with the cash rate near zero, and inflation and unemployment targets not near the RBA’s liking yet, it may be a number of years until savers can expect a decent return on their savings.

In fact, savers may want to consider whether locking in a term deposit sooner rather than later could see them avoid potential further rate cuts. RBA Governor Philip Lowe’s recent comments on monetary policy have led many experts to believe that the next cash rate cut could come as soon as Melbourne Cup day.

While a full 25 basis points cut is not expected, even a further 15 basis point cut could plunge term deposit interest rates closer to zero.

If you’re on the hunt for a term deposit that’s still offering a high rate of return, there are factors you may want to consider. Typically, the higher your deposit balance and the longer the term is that you agree to, the higher the rate of interest may be. However, if you’re setting a term deposit for a number of years and interest rates go up again, you may find your savings locked away at a lower rate than market average.

When interest rates are this low, it’s a balancing act for savers. And finding the most competitive term deposits right now may feel like searching for a needle in a haystack. Luckily, this is where RateCity comes in.

Using RateCity’s Real Time Ratings™ system, we’ve given each term deposit in our database a score out of five, as determined by interest earned and flexibility. Each score is tallied up daily, so you have the most accurate rating to help you find your next term deposit. This has helped us to create our term deposit leader board.

Best 12-month term deposits

Here are some of the most competitive shorter-term deposit accounts for those looking for a high yield in one year.

Provider

Real Time Rating™Min depositInterest rateMaximum rate

$1,000

5.05%

for 9 months

5.05%

for 9 months

Personal Term Deposit (At Maturity)

• 2024 Award Winner
• 9 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$5,000

3.60%

for 3 months

4.80%

for 6 months

Term Deposit

• 3 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$1,000

4.80%

for 3 months

4.80%

for 3 months

Term Deposit I10

• 3 months
• Automatic maturity rollover
• Joint application available
• Interest payment to other institution

$5,000

0.75%

for 1 month

4.70%

for 6 months

Term Deposit

• 1 month
• Automatic maturity rollover
• Joint application available
• Interest payment to other institution

$1,000

4.80%

for 3 months

4.80%

for 3 months

Term Deposit

• 3 months
• Automatic maturity rollover
• Joint application available
• Interest payment to other institution

Best 3-year term deposits

A longer-term deposit option for those searching for a higher return on their savings while they wait out the low interest rate period.

Provider

Real Time Rating™Min depositInterest rateMaximum rate

$1,000

5.05%

for 9 months

5.05%

for 9 months

Personal Term Deposit (At Maturity)

• 2024 Award Winner
• 9 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$1,000

4.80%

for 3 months

4.80%

for 3 months

Term Deposit I10

• 3 months
• Automatic maturity rollover
• Joint application available
• Interest payment to other institution

$5,000

0.75%

for 1 month

4.70%

for 6 months

Term Deposit

• 1 month
• Automatic maturity rollover
• Joint application available
• Interest payment to other institution

$1,000

4.80%

for 3 months

4.80%

for 3 months

Term Deposit

• 3 months
• Automatic maturity rollover
• Joint application available
• Interest payment to other institution

$1,000

4.80%

for 3 months

4.80%

for 3 months

Term Deposit

• 3 months
• Automatic maturity rollover
• Joint application available
• Interest payment to other institution

Best 5-year term deposits

Lock in a competitive interest rate on your nest egg over the longest period of time on offer generally from providers.

Provider

Real Time Rating™Min depositInterest rateMaximum rate

$10,000

1.50%

for 1 month

4.80%

for 6 months

Term Deposit

• 1 month
• Automatic maturity rollover
• Interest payment to other institution

$1,000

5.05%

for 9 months

5.05%

for 9 months

Personal Term Deposit (At Maturity)

• 2024 Award Winner
• 9 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$5,000

1.00%

for 1 month

4.55%

for 12 months

Term Deposit

• 1 month
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$5,000

0.75%

for 1 month

4.70%

for 6 months

Term Deposit

• 1 month
• Automatic maturity rollover
• Joint application available
• Interest payment to other institution

$1,000

4.00%

for 3 months

4.75%

for 6 months

Term Deposit

• 3 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

Compare term deposits

Provider

Real Time Rating™Min depositInterest rateMaximum rate

$1,000

3.50%

for 3 months

4.95%

for 6 months

More details

Investment Plus

• Promoted
• 2024 Award Winner
• 3 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$5,000

4.75%

for 9 months

4.75%

for 9 months

Special Term Deposit

• 9 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$5,000

1.25%

for 1 month

4.75%

for 8 months

Advance Notice Term Deposit

• 1 month
• Automatic maturity rollover
• Joint application available
• Maturity alert by phone

$5,000

0.10%

for 6 months

0.15%

for 12 months

Term Deposit

• 6 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by phone

$5,000

1.20%

for 1 month

4.45%

for 9 months

Term Deposit

• 1 month
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$5,000

1.25%

for 1 month

4.75%

for 8 months

Term Deposit

• 1 month
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

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