Some of the top-rated term deposits in September 2024

Some of Australia’s banks and Authorised Deposit-taking Institutions (ADIs) have begun slashing rates on term deposit offers, possibly in anticipation of future cuts to the cash rate from the Reserve Bank of Australia (RBA). This makes it important to carefully compare your term deposit options before opening an account or rolling over an existing deposit.

RBA governor Michele Bullock has indicated that the central bank is unlikely to cut the national cash rate for the rest of this year, given the current data. But economists from the big banks are forecasting that the next move from the RBA will still be a cut, thanks to gradually moderating inflation figures.

Because term deposits involve fixed interest rates for up to five years or longer, banks and ADIs may choose to adjust these rates in advance of forecast economic changes to better ensure accurate pricing in the future. It is being seen with fixed rate home loans, and also term deposits. Banks that have recently cut selected term deposit products include the Commonwealth Bank, NAB and ANZ. However, recent RateCity research found that since 1 August 2024, 15 banks have increased rates on at least one term deposit.

Remember that changes to term deposit interest rates should only affect new term deposit customers – existing term deposits will stay at the same fixed rate until they reach maturity. At this point, you may be given the choice to roll over your deposit for another term, withdraw your cash, or switch to another offer.

It’s still possible to find a term deposit that offers an above-average interest rate, if you compare the available options. It’s also important to consider the term length and any other features and benefits that could affect the term deposit’s overall value to you given your personal situation and financial goals.

To help make your term deposit comparison that little bit simpler and easier, RateCity’s Real Time Ratings™ combine the interest and flexibility of different term deposit deals and express them as a single star rating. For improved accuracy, these ratings are regularly updated, and ranked in different categories on RateCity’s Term Deposit Leaderboards. Some of the top-rated offers may also become eligible for a RateCity Gold Award.  

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

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