While Judo Bank still offers the leading rates on 3-year, 4-year, and 5-year terms, at 5.30% p.a., challengers have moved in to dominate shorter term offerings. Judo Bank, typically known for leading the charge with the highest term deposit rates in Mozo’s database, has been dethroned as a rate-leader on some terms. The leading term deposit rates currently hover just above the 5.00% p.a.
While term deposit rates lost some momentum between June and October 2023, when the Reserve Bank of Australia paused their rate tightening cycle to assess its impact, the 25 basis-point hike last month finally gave deposit rates some room to grow. As we rapidly approach the end of 2023, term deposits remain an attractive option for Australian savers looking to earn a fixed rate of return.
