Some of the top-rated term deposits in December 2023

With the Reserve Bank of Australia (RBA) keeping the national cash rate on hold at 4.35% in December 2023, not a lot of movement is expected for term deposit interest rates in the immediate future. But with some economists forecasting that the RBA could hike rates again in February 2024 if inflation doesn’t fall fast enough, It may become possible to give your savings an extra boost later in the new year.

Keep in mind that nor every bank or other authorised deposit-taking institution (ADI) may pass on a future rate rise. For example, following the RBA rate hike in November 2023, the banks and ADIs that raised rates for their savings account and term deposit customers were a relatively short list. At the start of December 2023, just 40% of all savings accounts had raised rates following the RBA hike.

Whether you already have your savings in a term deposit, or you’re planning to open an account, remember that the money in a term deposit can do more than just help you grow your wealth through interest earnings. Term deposits are also considered financial assets, so they can be used as collateral when borrowing money with a secured loan.  

Before you open a term deposit or consider rolling your savings over to an alternative option once your current deposit reaches maturity, it’s important to compare the options available to you. RateCity’s Real Time Ratings™ can help you quickly work out the value of different term deposits, as these simple star ratings combine the interest and the flexibility offered by each deal. The top-rated term deposits can be found on RateCity’s term deposit leaderboards, and may become eligible for RateCity Gold Awards.

(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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