Stash your cash with some of the best term deposits in December 2022

The Reserve Bank of Australia (RBA) is tipped to hike the cash rate again this month by 0.25 percentage points, which could be favourable for savers looking to open new term deposit accounts.

The RBA has already hiked the cash rate eight times this year, and while not all banks have increased their term deposit products in line with each interest rate rise, a number of banks are offering rates above 4 per cent.

RateCity research shows that the big four banks’ highest term deposit rates were only between 0.2 - 0.3 per cent before the RBA hikes began in May. Now, the highest rates offered by the big four banks for term deposits are at least 4 per cent.

If you’re thinking of putting away a portion of your savings for an extended period, now may be the time to consider a range of term deposit account options, such as three, six or twelve month accounts or accounts which pay interest monthly.

There is no single best term deposit account as everyone’s needs are different. To get a better idea of which accounts may provide the most value for your money, you could consider comparing their Real Time Ratings™, to evaluate interest and flexibility scores.

Term deposits for domestic and international students

If you are an Australian-born student currently living in Australia, applying for a term deposit may be as simple as comparing your options online, meeting some basic eligibility criteria and submitting an application.

Banking for overseas students can be complicated, but you may still be able to steadily grow your funds as an international student by opening a term deposit. Be aware that any interest earned is considered taxable income.

Foreign currency term deposits

A foreign currency term deposit is a fixed term investment in another currency. This type of account offers you the same benefits as a regular term deposit account, while also allowing you to save in different currencies.

Some of the best three-month term deposits

Three months isn't a long stretch, but considering interest rates available, it might be sufficient enough to earn a good return on your term deposit. Consider minimum deposit amounts, interest rates, fees and overall returns to find a short-term deposit that suits your needs.

Some of the best six-month term deposits

During this investment period, you will not be able to touch your money, unless you’re willing to pay a penalty fee for early access. However, you will earn interest on your deposit at a fixed rate to grow your wealth over time.

Some of the best twelve-month term deposits

Taking out a term deposit that matures after one year may be a way of achieving your savings goals, while applying self-imposed controls against potential unnecessary spending.

Some of the best term deposits which pay interest monthly

While most term deposit accounts pay interest at the end of the agreed term, you can also find accounts that pay interest on a monthly basis. These types of accounts may be helpful if you’re looking to spend your savings on a regular basis.

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