compare bank interest rates term deposits australia

The frequency with which you receive your interest also affects the interest rate you receive. if you agree to park your funds for a minimum of two years. If you have $50,000 to deposit, the interest rate offered could be as high as 2.5% p.a. This may rise to 1.25% if you agree to a term deposit of one year. For example, a bank may offer a six-month interest rate of 0.65% p.a. Interest rates rise as the size of your deposit and term length grow. This is called a ‘tiered’ interest rate system. They aren’t legally obliged to match any changes announced by the RBA but, in the past, the major banks have traditionally followed the RBA’s lead.Īdditionally, the longer the term you choose, and the more you deposit, the higher the interest rate you’re likely to be offered. Once the RBA has announced the cash rate, banks consider if they are going to hold, increase or decrease their own interest rates, both on loans and savings.

The banks and financial institutions typically set their interest rates based on the cash rate determined by the Reserve Bank of Australia (RBA).

Compare bank interest rates term deposits australia