Some of the top-rated term deposits in November 2024

Savers have benefited from relatively high interest rates on term deposits and savings accounts in the recent past, driven by the Reserve Bank of Australia's (RBA) series of cash rate hikes aimed at managing inflation. However, since November 2023, the RBA has held the cash rate steady at 4.35%, and economists from the Big 4 banks forecast a potential rate cut as early as February next year.

Many banks and Authorised Deposit-taking Institutions (ADIs) have recently begun lowering term deposit rates, particularly on longer-term deposits, in anticipation of the rate cuts expected next year. According to RateCity’s data, there have been several adjustments to term deposit rates recently, with a notable trend toward reductions.

Approximately 30 lenders, including ANZ and NAB, have decreased their term deposit rates, while around 15 have made increases. However, you can still find deals in the 5% range on short-term deposits under 12 months.

While rates for longer terms may not be as competitive as a year ago, if you are considering locking your money away for a short period, now could be a good time to compare offers before rates drop further as we move closer to a potential rate cut in 2025.

Highest deposit rates on a $25,000 deposit:

1-year term deposits

2-year term deposits