How easily can you access your savings? Some of the top-rated term deposits in August 2024

New figures show that Australians saved less money at the end of the financial year, though we may soon be putting more cash back in the bank. When it comes to term deposits, it’s important to consider how easily you’ll be able to access your money if you need it.

The most recent figures from the Australian Prudential Regulation Authority (APRA) show that in June 2024, Australians put $11.5 billion less into Authorised Deposit-taking Institutions (ADIs), compared to the last month. This includes money saved in term deposits, transaction accounts, mortgage offset accounts and savings accounts. While spending at the end of the financial year could have contributed to these lower savings figures, they may rise again as Australians start to deposit their tax returns. 

It’s important to remember that term deposits are less flexible than savings accounts, and deliberately so. The idea is that you agree to deposit an amount of money with an ADI for a fixed amount of time, and you will receive simple interest at a fixed rate in return. This means you can calculate the returns on your deposit in advance, and avoid a lot of the risk you’d get with some other investment types, as money deposited with an ADI is guaranteed by the Australian government.

Because withdrawing money from a term deposit ahead of schedule would break this arrangement, to do so you’ll often need to provide plenty of advance notice, such as around 30 days. You may miss out on some of the interest you otherwise would have earned, and in some cases you may also need to pay a fee to exit a term deposit early.

One option you could consider is using shorter term deposits, which run for less than 12 months. These deposits reach maturity faster and roll over more often, giving you more chances to choose if you want to withdraw your money or roll it over for another term. Just keep in mind that there may be different interest rates on shorter term deposits compared to longer term deposits (which can run for as long as 5 years or more), which could affect the returns you may receive from a term deposit. It’s important to compare potential term deposit options before deciding.

RateCity’s Real Time Ratings™ combine the interest and flexibility of different term deposit options, to give you a better idea of their overall value, for quicker and simpler comparisons. Some of the top-rated term deposits can be found on RateCity's Term Deposit Leaderboards and may also earn a RateCity Gold Award.

(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)

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