The Reserve Bank of Australia (RBA) held the cash rate at 4.10% in September. Given this decision, many banks will also likely leave interest rates unchanged. This may be a strategic moment to consider stashing some of your savings in a term deposit.
This is the fourth time in six months that the central bank has paused its more than year-long rate hike cycle. While there may be another rate rise this year, it’s likely we’re close to the peak.
Analysts at three of the big four banks don’t anticipate any further increases to the cash rate this year. However, NAB still maintains its prediction that one more hike could occur in late 2023. We could now see cash rate cuts as soon as March 2024.
If you’re considering putting away some of your hard-earned savings, you may want to compare several term deposit accounts to discover those offering the most attractive rates and features that fit your savings goals.
It’s important to be aware that not all banks have increased their term deposit rates in line with the RBA’s cash rate rises. However, a few banks are offering rates above 4.75%, with the highest at 5.25%.
