Term Deposits

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There are few investment vehicles more ‘plain vanilla’ than term deposits. Yet there are so many institutions offering them in Australia across as many as 12 different maturities that it can be very difficult to compare them all. Our top 40 banks show 19 different term deposit rates for 1 year^ with the difference between the highest and lowest rate on a $1m term deposit worth as much as $20,000 in interest.

YieldReport collects this rate data meticulously every day on every major term deposit across a wide spectrum of maturities. We present the information in concise tabular form.

A quick scan of YieldReport’s term deposit table shows which banks are offering the best rates across which terms – and which rates have changed over the previous day, previous week or previous month. We even highlight the credit rating of the bank or credit union so that readers can make their own judgement on the creditworthiness of each bank.

It is also important to know that term deposits need to be actively managed – they are not a set and forget investment. An ASIC report from 2009* estimated that around 47 per cent of term deposits in Australia were automatically ‘rolled over’ at lower default interest rates at maturity. This is an expensive trap that YieldReport readers can easily avoid.

Our YieldReport readers are in a much better position to tell their bank what they want to do with their funds at maturity – and are far less likely to accept rates that are not competitive.

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