Shirley Liu is Finder's global program manager. She was previously the publisher for banking and investments and has also written comparisons for energy, money transfers, Uber Eats and many other topics. Shirley has a Master of Commerce and a Bachelor of Media, Journalism and Communications from the University of New South Wales. She is passionate about helping people find the best deal for their needs. See full bio
' > Shirley Liu Updated Aug 21, 2024 Fact checked Navigate Term Deposits In this guide In this guideTerm Deposit Guides & Tools
Looking at historical term deposit rates can help you understand that rates are constantly changing and how the official cash rate also impacts term deposit rates. As the official cash rate has continued to fall over the last decade, so too have term deposit rates.
Let's take a look st some examples of old term deposit rates offered by Australia's biggest four banks, and how that compares to their rates now.
Here are some of NAB's Term Deposit rates from 2011 through to 2014, and now.
| Date | 6 month term | 12 months | 2 years |
|---|---|---|---|
| 6/6/11 | 6.11% p.a | 6.18% p.a. | 6.30% p.a. |
| 2/1/12 | 5.75%.p.a. | 5.24% p.a. | 5.21% p.a. |
| 4/6/12 | 4.97% p.a. | 5.00%p.a. | 5.10% p.a. |
| 7/1/13 | 4.40% p.a. | 4.25% p.a. | 4.40% p.a. |
| 3/6/13 | 3.98% p.a. | 4.00% p.a. | 4.20% p.a. |
| 6/1/14 | 3.70% p.a. | 3.75% p.a. | 3.90% p.a. |
| Current rates | 3.6% | 4.5% | 4% |
Here are some of ANZ's Term Deposit rates from 2011 through to 2014, and now.
| Date | 3 months | 12 months | 3 years |
|---|---|---|---|
| 6/8/11 | 5.60% p.a. | 6.00% p.a. | 6.20% p.a. |
| 20/3/12 | 5.30% p.a. | 5.00% p.a. | 5.30% p.a. |
| 10/10/13 | 2.50% p.a. | N/A | 3.30% p.a. |
| 25/4/14 | 2.50% p.a. | N/A | 3.30% p.a. |
| Current rates | 0.05% | 0.15% | 0.15% |
See past Westpac's term deposit rates and the current rates.
| Amount $5,000 - $10,000 | 3 months | 12 months | 3 years |
|---|---|---|---|
| 19/7/14 | 2.50% p.a. | 3.30% p.a. | 3.70% p.a. |
| Current rates | 3.5% | 4.25% | 4% |
See past CommBank's Term Deposit rates and the current rates.
| Amount $10,000 - $49,999 | 2 months | 12 months | 5 years |
|---|---|---|---|
| 15/12/12 | 4.20% p.a. | 4.25% p.a. | 4.50% p.a. |
| 22/5/2013 | 3.90% p.a. | 3.95% p.a. | 4.50% p.a. |
| Current rates | 1.45% | 4% | 3.55% |
Overall, rates have fallen significantly since 1985, and are at record low levels today.
| Year | January | July |
|---|---|---|
| 1985 | 11.95% p.a. | 12.50% p.a. |
| 1990 | 14.90% p.a. | 13.95% p.a. |
| 1995 | 8.50% p.a. | 7.00% p.a. |
| 2000 | 5.45% p.a. | 5.85% p.a. |
| 2005 | 4.65% p.a. | 4.75% p.a. |
| 2010 | 5.95% p.a. | 6.00% p.a. |
| 2011 | 6.15% p.a. | 6.00% p.a. |
| 2012 | 5.00% p.a. | 4.40% p.a. |
| 2013 | 4.15% p.a. | 3.70% p.a. |
| 2014 | 3.35% p.a. | 3.30% p.a. |
| 2015 | 3.05% p.a. | 2.40% p.a. |
| 2016 | 2.45% p.a. | 2.35% p.a. |
Yes, rates on term deposits are nothing like they used to be. However, term deposits are still one of the safest, low-risk ways to invest your cash when you're not using it.
1 - 6 of 175Interest rates usually follow a similar pattern to the Cash Rate, determined by the Reserve Bank of Australia on the first Tuesday of every month (except for January). When the cash rate is low, it's cheaper for the banks to borrow from the Reserve Bank of Australia. Therefore, banks don't have an incentive to offer savers a high interest rate, because it's easier for them to source their funds from the Reserve Bank of Australia.
Also, when the Cash rate is low banks also have lower home loan rates, meaning they're making less money from interest repayments on mortgages. With less money coming in from mortgages, there's less money to pay out on things like term deposits and savings accounts.
A low cash rate usually means that loan interest rates are lower than usual. So now could be a good time to refinance your home loan.
No, the Cash Rate is reflective of the state of the economy. For example, a low cash rate signals a slow economy, as the Reserve Bank is trying to encourage businesses to borrow funds for investment, which in turn will theoretically expand the economy. As the economy slowly regains its pace, the cash rate will rise as a result, and in effect, so will term deposit interest rates (eventually). However, mortgage rates will rise before term deposit rates do.
Looking for something to do with your cash? You'll find better interest rates on high interest savings accounts, and don't need to lock your money away for a set period of time. Or, if you are looking for a long-term growth you could consider investing in shares, investing in an index fund or topping up your super fund.
Was this content helpful to you? Thank you for your feedback! Written byShirley Liu is Finder's global program manager. She was previously the publisher for banking and investments and has also written comparisons for energy, money transfers, Uber Eats and many other topics. Shirley has a Master of Commerce and a Bachelor of Media, Journalism and Communications from the University of New South Wales. She is passionate about helping people find the best deal for their needs. See full bio
More resources on FinderTerm Deposit Guides & Tools
Compare term deposit rates from the Big Four banks Compare term deposit rates from Australia's Big Four banks and see if you can find a better rate with a smaller bank.
UniBank Term Deposit Lock in a fixed rate on a range of term lengths between 3 months and 3 years for deposits $1000 or more.
Australian Unity Term Deposit Australian Unity Term Deposit offers you a wide choice of term lengths for your investment, with a fixed rate of return on your money.
Heartland Bank Term Deposit Earn a competitive interest rate on terms between 1 month and 2 years with a Heartland Bank term deposit.
Are term deposits safe? They offer a fixed interest rate (so you don't need to worry about any market volatility) and your deposit up to $250,000 is protected by the government.
Compare 5-year term deposits and maximise your savings A 5-year term deposit combines competitive fixed interest rates with the security of guaranteed returns.
People’s Choice Credit Union Term Investment Set your own terms and conditions for how your money grows with a flexible investment account that rewards you with higher interest earnings.
Term deposit calculator With the help of a term deposit calculator you get a better idea of how much you need and for how long to invest so you can meet your financial goals.
Term deposit rates for $100,000+ balances If you need a safe place to tuck your savings of away and yield a profit, a $100,000 term deposit could provide a solution.
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