The Switzer Super Report keeps a record of the best term deposit rates over six time frames, from three months to five years.
Our latest information shows that ME Bank offers some of the best rates with 4.15% for a 5-year term, 3.65% for a 3-months and 12 months as well. Its three-year rate is 3.8%.
The big four don’t do that poorly in comparison, with Westpac offering a 5-year rate of 3.9%. Don’t forget you’ll always get a better rate the longer you’re prepared to lock your capital away.
And unfortunately while banks can be a little bit slow to factor in rate cuts to your home loan rate, they’re usually pretty fast at doing the opposite and may have already factored in another rate cut, which many are saying is on the cards.
Source: Switzer Super Report. Green – denotes the highest rate for each term.
Keep on eye on our tables – usually updated Monday afternoon – if you want to know the best rate you can get on your deposits.
The banks
After the market’s stellar run of late, it might be time to consider some profit taking at the margins, but only at the margins, and perhaps only if you need the cash.
Switzer Super Report co-founder and expert Paul Rickard says as reluctant as he is to advocate selling the banks, they have had a remarkable run.
“Most are up by around 10% since the start of the year,” he says.
“NAB, the cheapest, has performed best this year. However last week’s quarterly update was underwhelming – negative jaws with underlying revenue up 2% and expenses up 4%. At around $37.00, NAB is a trading sell,” he suggests.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
