Which Banks or Building Societies have the best term deposit rates?

term deposit rates

Believe it or not, your conventional term deposits are still one of the most efficient investment options for people looking to save up for their retirement. This is simply because term deposits offer relatively slow, but guaranteed returns that are not affected by price volatility, making it popular amongst rookie and veteran professionals alike.

Term deposits, unlike stocks, are also technically risk-free. That is, unless, if the entire bank collapses financially and your savings account is not insured. Otherwise, your term deposit is very much safe and secure until you decide to pull your money out during retirement.

There is one caveat to term deposits, though: gaining profit is excruciatingly slow, and most institutions offer very low interest rates. This is not to discourage you from considering term deposits as an investment option, because there are some banks and financial institutions that actually offer strategic term deposit rates to get you started immediately! Let’s take a look at them below.

Newcastle Permanent Building Society Term Deposit

Newcastle Permanent Australia’s term deposit gives absolute flexibility and total comfort for its investors. After all, it boasts a minimum deposit of $1,000 and interest rates of 2.60%! Not only are you given peace of mind for your investment, you are also given absolute security knowing that Newcastle Permanent is a reputable financial institution.

For high-value depositors, Newcastle Permanent has a professional Treasury team that assures its depositors of high returns in as early as 21 days up until 5 years.

Want to learn more about Newcastle? Click here to learn more about term deposit rates.

First Mac: High Livez Bond Fund

First Mac Australia’s High Livez Bond Fund offers one of the smartest and most flexible term deposit rates today. With a minimum deposit of $5,000, your investment can grow from about 2% to 2.75% in as early as 6 months. It is also secured with an Australian Government guarantee and offers very flexible payment schemes– you may opt to have a deposit term of 30 days to 6 months!

MyState Bank: Online Term Deposit

Recently, MyState Bank has marketed long-term investment returns for its clients by urging them to open online term deposit accounts. Like First Mac, it also has a minimum deposit of $5,000 with potential interest rates of 2.60% to 2.70%.

Term deposit interests are subsequently calculated every day and paid at maximum term maturity. If you are looking at building up your retirement savings now, MyState Bank might just be the ideal option for you.

RACQ Term Deposit

RACQ Bank Australia prides itself on the amount of flexibility its term deposit accounts have, and how much freedom their clients enjoy by choosing payment schemes that best suit their needs. The RACQ term deposit account only requires a very minimum $1,000 to kickstart your investment, and all these have interest rates of 1.90% to a whopping 3%!

Your term can also range from 1 month to 5 years, and all this depends on your budget and financial goal by the end you decide to get your savings.

U Bank Term Deposit

Like RACQ Bank, U Bank Australia also has a very minimum deposit amount of $1,000 for its clients to be able to open a term deposit account. However, what sets U Bank apart from its competitors on this list is that it absolutely has no miscellaneous fees! It also introduced a “Loyalty Bonus” for deposits that are rolled over for another term– if you decide to let your money stay for a little longer, you get an extra 0.10% in interest on top of your standard interest rate. Isn’t that stellar?


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