Grow your wealth: top term deposits for September 2023

Grow your wealth: top term deposits for September 2023

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%.

Consider short term deposits

Term deposits are considered a relatively safe and practical option compared to other investments, such as property and shares. If you are considering investing your savings but don’t want to tie up all your funds for a long period of time, consider a short-term deposit. These can be an attractive option for investors seeking to grow their money for up to a year. 

Common short-term deposits are 30 days, 60 days, 90 days, 120 days, 180 days and 12 months. Typically, the longer the term the higher the interest rate, but this may differ between financial institutions.

High interest 1-year term deposits

A year could be the time it takes to grow your wealth using a term deposit. Compare interest rates, returns, fees and more, and find a term deposit ideal for your financial situation.

High interest 3-year term deposits

Three year term deposits can be an excellent choice if you’re seeking a secure and stable place to park your cash. You may also enjoy a higher overall yield than a traditional savings account.

High interest 5-year term deposits

Five year term deposits can be a smart option for those willing to commit their funds for a longer period, as they typically offer higher interest rates and can provide a reliable source of passive income.

Product database updated 22 Oct, 2023

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