It’s not yet certain if Australia’s cash rate has already reached its peak, or if one more rate rise may be required before the end of the year to help push inflation back down into the RBA’s target band. But if inflation does slow down, you may find that the right term deposit can make a much bigger impact on your savings goals.
If the interest rate on your savings account or term deposit is lower than Australia’s inflation rate, then you may see your money going backwards, where even as you receive more money from interest payments, your money has less buying power. Despite a recent uptick in monthly inflation, the quarterly statistics are due to be released at the end of October 2023, and may help to influence future financial decisions.
While the interest rate on a term deposit is important, as it determines the return on your investment, there are more factors to consider. This may include how flexible the term deposit may be when it comes to making early withdrawals, the notice period required, and any penalties that may be involved.
RateCity’s Real Time Ratings™ combine the interest and flexibility of different term deposit deals into a single simple star rating that is updated as you use the site, to give you a more accurate indication of each term deposit’s overall value. This can help you quickly compare term deposit deals, and get a better idea of which options may best suit your financial situation and savings goals.
