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Best term deposits for November 2020

Best term deposits for November 2020

It’s not an easy time to have a term deposit, and with another Reserve Bank of Australia cash rate cut pushing rates even further down, Australian savers may be wondering where they can still nab a high interest rate.

At the start of this month, the Reserve Bank of Australia (RBA) cut the cash rate to a new record-low of 0.10 per cent. There is very little wriggle room now left between the official cash rate and zero, and savers are feeling the full impact of these cuts.

RateCity research has found that 58 lenders have cut term deposit interest rates since the 3rd November. Three of the big four banks – minus Westpac – have all made cuts to their savings, retirement and term deposit accounts.

The latest RBA cut has brought down the average term deposit rate on $10,000 balances for 12-month terms to 0.76 per cent from 0.68 per cent.

Average term deposit rates pre- and post-RBA cut

$10k balance

2/11/20

23/11/20

3-month term

0.62%

0.52%

6-month term

0.66%

0.58%

12-month term

0.76%

0.68%

36-month term

0.83%

0.74%

Source: RateCity.com.au

Considering that the RBA Governor Philip Lowe has suggested that the cash rate will not increase for some time until inflation targets are met, it may be a while before term deposit account rates go up again.

But there are still competitive term deposit accounts out there. It may just take some research, and even leaving the bank you’ve been with since you were a kid, as the most competitive rates are typically offered by competitors to the big four banks.

This is where RateCity comes in. We’ve done the research for you thanks to our Real Time Ratings™ system. Real Time Ratings™ gives each term deposit in our database a score out of five, as determined by interest earned and flexibility. The rankings are calculated daily, meaning you’re using the most accurate and up-to-date rating system to find your next term deposit.

This has helped us to create our term deposit leader board, highlighting the most competitive term deposit accounts for your comparison journey.

Best 12-month term deposits

No one knows how interest rates may fluctuate over the next few months. If you’re looking for a high return on a shorter term, here are some of the most competitive 12-month term deposits.

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Best 3-year term deposits

Wait out this current low interest period with a longer-term deposit that offers competitive returns over three years.

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Best 5-year term deposits

Lock in a competitive interest rate for your nest egg while you ride out the impacts of Covid-19 on our economy and this low-rate environment.

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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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