This annual interest rate yield indicated for this 6 month/180 day term deposit product requires greater than $50,000 to $1,999,999. For other interest amounts other rates may apply. The rate of 1.55% is 0.17% lower than the average 1.72%. Term Deposits Interest Rates. With this interest rates table, you can use the arrows to sort by various options such as interest rate, provider, amount and rating. Rates changes from the past seven days will be highlighted in green or red. View Cash PIE and Term PIE rates here. NEW: Click on a provider's name or logo to see all their rates.

It's no secret that the current interest rates for both savings accounts and term deposits aren't exactly groundbreaking.

In 2011, deposit products offered well over 6%pa. Fast-forward to 2019 and it's rare to find a term deposit that returns more than 3%pa on your savings.

However, there are a few that do. Generally, the best rates are for longer terms and for larger deposits; however, there are a few offering above 3%pa on deposits of just $1000.

Here are five of the best term deposit rates in the market today.

So rates aren't what they were in 2011 but term deposits still have their place and they offer a number of benefits to savers and investors, even in this low-rate environment.

Five benefits of term deposits

1. They're low risk

Term deposits are a safe, low-risk way to invest your money. Your deposit, up to $250,000, is covered by the Australian Government guarantee scheme, so if the bank were to go under term deposit holders would be paid back ahead of shareholders.

For investors, term deposits are a great option if you're looking for some low-risk, defensive assets to add to your portfolio.

2. They offer predictable returns

Term deposits offer a fixed interest rate, unlike savings accounts, which have a variable rate that could change at any time.

Because the rate on your term deposit is fixed for the life of the term, if interest rates fall lower your rate will remain unchanged. It also means you can predict the return on your initial deposit down to the dollar, which is helpful for both peace of mind and budgeting.

Term Deposit Rates

3. They prevent you from dipping into your savings

Unlike money in a savings account, which you can withdraw whenever you need, term deposits are locked in until they mature.

This is a good option if you find yourself regularly dipping into your savings for impulse purchases.

4. There are no ongoing conditions to meet

Savings accounts often have monthly deposit conditions to earn the bonus interest rate, and if you don't meet the conditions you're often left with little to no interest. Term deposits have no ongoing conditions to meet, making them a great set-and-forget savings strategy.

Best Term Deposit Rates Usa

5. They're flexible

Term deposits aren't a one-size-fits-all product. You can choose one that's locked in for just one month or up to five years.

You can also choose how you'd like to receive your interest, whether it's monthly, twice a year, annually or in a lump sum at maturity. You can choose whatever suits your financial needs.

Term deposits don't offer the big capital growth that you might experience with some high-risk shares or even property but they do provide a safe and secure place to park your savings while you enjoy guaranteed, risk-free returns.

Short-term savings accounts received a boost this week, as Monzo Bank increased interest rates on its short-term savings accounts and introduced a new three-month option.

Savers with the Monzo Bank-OakNorth three-month fixed-term account can now earn the equivalent of 1.35% AER. Meanwhile Monzo’s other savings account rates have increased by up to 0.1%.

But these aren’t the only choices for savers reluctant to commit their cash for more than a year.

According to Moneyfacts, there are currently 142 short-term fixed-rate savings accounts on the market, with terms ranging from just three months up to 12 months.

Which? reveals which short-term accounts offer the highest rates, and how they compare to other ways to save.

How much interest can you earn from short-term fixed accounts?

The table below shows the top fixed-rate accounts with terms of 12 months or less, ranked by how long your money is locked away. The links will take you through to Which? Money Compare.

_{*Expected Profit Rate. Source: Which? Money Compare and Moneyfacts. Correct 23 July 2019.}

Generally, the longer the fixed term, the higher the rate you’ll receive. Bank of London & The Middle East’s six-month bond bucks this trend by offering a rate higher than the highest nine-month account, enabling your savings to grow faster in a shorter space of time.

As is often the case, it can be difficult for those with less than £1,000 to get the top rates – however, the top nine-month and three-month bonds only require an initial deposit of £1 and £500 respectively.

With a rate of 1.35%, Monzo’s new three-month bond is table-topping – and it’s only available through Monzo’s savings pots in the app. This could be great news for savers looking for a convenient short-term option.

But despite increased rates, Monzo’s existing accounts aren’t the best. In fact, you could get a better rate by going directly to its partner OakNorth. The new rates for Monzo’s existing fixed-term accounts are:

• six-month fixed-term account: 1.46% AER
• nine-month fixed-term account: 1.51% AER
• 12-month fixed-term account: 1.63% AER

Should I get a short-term savings account?

Before opting for a new home for your savings, consider the pros and cons of these accounts. In some cases, you may be better off not opting for a fixed-term at all.

Pros of short-term fixes

• You’ll be less likely to spend your savings: removing the ability to access your account – even for a short time – removes the temptation of dipping into your savings. That’s unlike an instant access account, for instance, where you need to exercise some spending self control.
• There’s minimal commitment: the prospect of saying goodbye to your cash for five years can seem pretty daunting, whereas a year or less can be more palatable.
• You’re free to jump to the best deals: if rates increase, you’ll be free to bag a top deal, which you couldn’t do if you had locked your savings away for years. Conversely, if rates drop you could find yourself in a worse position than if you had locked in to a steady rate.

Cons of short-term fixes

• The interest rate may not be as high as advertised: The interest rate on the account – the AER – reflects the amount you would earn over a whole year, not over the account’s term. For example, if you put your money in a three-month fix account with an AER of 1.35%, you would earn just a quarter of that interest during those three months.
• You could earn more interest in some instant-access accounts: the top-rate instant-access savings accounts currently pay 1.5% AER (though only for the first 12 months, as both have a bonus rate). This beats the top-rate three-month fixed account, while also offering the flexibility to make withdrawals.
• Most short-term fixed accounts don’t beat rate of inflation:CPI inflation measured 2.00% in June 2019, so any account with a rate below this would mean your money loses value in real terms.
• You’ll have to move money more frequently: even the savviest of savers may find it hard to remember to move their savings around every three months; a longer-term account reduces this hassle.

You’ll need to weigh up each of these factors to decide what kind of account is likely to work best for your circumstances.

Find out more:how to find the best savings account

Other ways to save money for a year or less

You don’t necessarily have to lock up your money at all to help it grow. Here are a couple of options:

Cash Isas

There aren’t currently any cash Isas with a term of less than a year, but the top one-year fixed-rate accounts are:

• Shawbrook Bank one-year fixed-rate cash Isa: pays 1.62% AER and requires an initial deposit of £1,000.
• Cynergy Bank one-year fixed-rate cash Isa: you can earn 1.61% AER when you pay in at least £500.
• OakNorth 12-month fixed-rate cash Isa: this offers 1.61% AER on a minimum initial deposit of £1,000.

While these rates are lower than savings accounts, they have the added benefit of being tax-free.

Interest earned from cash in a savings account may be taxable if it exceeds the personal savings allowance. This varies depending on your income tax bracket – basic-rate taxpayers have a £1,000 personal savings allowance, while higher-rate taxpayers have £500, and additional-rate taxpayers don’t receive any.

So, if you earn a high income, or hold a large savings pot that generates a lot of interest, using an Isa will mean you won’t pay tax on your savings income.

Find out more: personal savings allowance and tax on savings interest

Notice accounts

Notice accounts sit somewhere between instant-access and fixed-term accounts. You can usually make unlimited withdrawals, but there’s a catch – you have to give your provider a certain amount of notice before you’ll receive the money.

The notice period will be specified when you open the account, but are most commonly 30 days, 60 days and 90 days – though other terms are available. Generally, accounts with longer notice periods have a higher rate of interest.

The top-rate notice accounts for 30, 60 and 90-day periods are:

• Secure Trust Bank 30-day notice account: paying 1.55% AER, you’ll need a minimum initial deposit of £1,000.
• Secure Trust Bank 60-day notice account: this pays 1.75% AER, also requires a £1,000 deposit.
• OakNorth 90-day notice account: offers 1.77% AER, also requires a £1,000 deposit.

Regular saver accounts

If you have a smaller savings pot, a regular savings account can be a good bet.

You’ll need to save a certain amount each month and depositing less than this, or withdrawing any money, could mean you lose out on the interest you’ve earned, so read the terms and conditions carefully.

Best Term Deposit Rates For 6 Months Libor Rate

The top regular savings accounts are:

• First Direct regular saver account: paying 5% AER, you need to hold a First Direct current account to apply. You can pay in between £25-£300 a month for 12 months. If you make any withdrawals during this time, the AER falls to 0.15% AER.
• M&S Bank regular saver account: pays 5% AER. You must hold an M&S Bank current account, and can deposit £25-£250 a month for 12 months. If you close the account before one year, you’ll receive the Everyday Savings Account variable rate, which is currently 0.2% AER.
• HSBC regular saver account (preferential rate): just for HSBC Premier or HSBC Advance customers, you can pay in £25-£250 a month, and you’ll receive 5% AER. If you close your account before the 12-month term, the AER will drop to 0.2% AER.

Best Term Deposit Rates For 6 Months Mortgage

You can search through hundreds of savings and cash Isa accounts with Which? Money Compare.

_{Which? Limited is an Introducer Appointed Representative of Which? Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited.}