Best Fixed Term Deposit Rates in Australia (October 2024) – Top Offers & Insights

Posted on: 12 November 2024

Term deposits remain a popular option for savers looking for safe, stable returns. In October 2024, there’s been a notable shift in term deposit rates among banks and financial institutions in Australia. With cash rate expectations indicating potential rate drops over the next 12 months, now is a great time to lock in higher rates while they last.

Let's look at the best fixed term deposit rates currently available, including recent rate adjustments, and help you find the most competitive offers in the market.

Recent Trends in Term Deposit Rates (September 2024)

From 23 to 27 September 2024, banks made several adjustments to their term deposit offerings:

Commonwealth Bank (CBA) raised its 3-month rate by 15 basis points but reduced rates for terms of 4 months or longer by 10-15bps.
Bank of Sydney significantly cut its 4-month rate by 90bps but increased its 6-month rate by 60bps.
Overall, the highest rate this week rose to 5.10%, offered by Judo Bank for a 6-month term?

Noteworthy Offers

Judo Bank leads the market with a top rate of 5.10% for a 6-month term, a standout for short-term savers looking to take advantage of high returns?
Rabobank Australia offers 4.85% for 3-month and 6-month terms, a competitive choice for those with shorter investment horizons.
AMP Bank also stands out with 4.70% to 4.80% for terms up to 9 months, providing excellent mid-range options.
Bank of Melbourne provides solid long-term rates of 4.00% for terms up to 1 year and 3.80% for 2-year deposits, catering to more conservative investors.

Top Fixed Term Deposit Rates

Here’s a snapshot of the best term deposit rates across different terms and institutions:

Institution	3-Month	6-Month	9-Month	1 Year	2 Years	3 Years	5 Years

Judo Bank

4.95%

5.10%

4.90%

4.50%

4.35%

AMP Bank

4.70%

4.80%

4.75%

4.25%

3.30%

Bank of Melbourne

3.55%

3.60%

4.00%

3.80%

3.60%

Bank Australia

4.90%

4.80%

4.70%

4.25%

4.00%

Rabobank Australia

4.85%

4.80%

4.70%

4.60%

4.25%

4.50%

4.60%

BOQ Specialist

4.60%

4.80%

4.70%

4.65%

4.30%

3.50%

MyState

4.00%

4.60%

4.75%

3.95%

CBA

3.15%

3.40%

4.45%

3.75%

3.50%

Westpac

3.25%

3.60%

4.00%

3.80%

3.60%

More rates can be found here

Recent Market Changes

Commonwealth Bank adjusted its rates, raising its 3-month offer to 3.15% but dropping rates for terms of 4 months and beyond. While not as competitive for long-term deposits, their short-term offer remains an option for those looking to park funds briefly.
Bank of Sydney significantly raised its 6-month rate to 4.60%, making it a good option for savers seeking short-term flexibility.
Bank Australia and AMP Bank also raised their rates for specific terms, both offering 4.90% for 6 months.

Should You Lock in a Term Deposit Now?

The Reserve Bank of Australia (RBA) is expected to maintain a steady cash rate in the short term, with a possible drop towards 3.53% by August 2025?

. This suggests that locking in a competitive rate now, especially for shorter-term deposits, might be advantageous before rates start declining.

For those with longer-term savings goals, some institutions still offer relatively attractive rates for 2 to 3-year terms, though shorter-term rates are currently higher.

Conclusion

As of October 2024, Australia's fixed-term deposit market is offering some of the highest rates seen in years. With Judo Bank leading the pack at 5.10%, and competitive offers from AMP Bank, Rabobank, and others, this is a prime opportunity for savers to lock in strong returns. However, as cash rate expectations signal potential drops in the next 12 months, acting soon could secure you a better deal before rates decrease.

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