Home News Household deposits are up during the pandemic: Are there any good interest rates?

Household deposits are up during the pandemic: Are there any good interest rates?

The latest data shows we've been stockpiling cash over the pandemic months, but interest rates on cash aren't too crash hot at the moment.

By William Jolly

First published on 18 Sep 2020

Household deposits are up during the pandemic: Are there any good interest rates?

Photo by Melissa Walker Horn on Unsplash

The Australian Prudential Regulation Authority (APRA) quarterly authorised deposit-taking institution (ADI) statistics to June 2020 show a massive spike in bank deposits since March.

From March to June, when pandemic fears were at its peak, household deposits (household cash in term deposits, savings accounts etc.) rose by 6.4%, or $64 billion, indicating a stockpiling of cash.

Over this same period, the household savings rate increased from 6% in the March quarter to 19.8% in the June quarter, the largest single increase in the history of the series.

Looking for a place to store cash? Below are a handful of 6-month term deposits with some of the highest interest rates in the market.

Deposit amount

Compare

Provider	Interest rate	Interest frequency	Term	Automatic Rollover	Maturity Alert	Early Withdrawal Available	Minimum Deposit	Joint Application	Online Application	as ofMay 1, 2025

	4.60^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
FEATUREDManage your term deposit online	Term Deposit - 6 months $0 monthly account fee Choose your own term with options from one month to five years. Guaranteed rate of return
Disclosure
FEATUREDManage your term deposit online Term Deposit - 6 months $0 monthly account fee Choose your own term with options from one month to five years. Guaranteed rate of return More details Disclosure
	4.80^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	1000	$product[$field["value"]]	$product[$field["value"]]	More details
	Fixed Term Deposit - 6 months
Fixed Term Deposit - 6 months More details
	4.50^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	ME Bank Term Deposit - 6 months
ME Bank Term Deposit - 6 months More details
	4.60^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 6 months
Term Deposit - 6 months More details
	4.25^%_p.a.	At Maturity	11_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 11 months
Term Deposit - 11 months More details

Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of May 1, 2025. View disclaimer.

Important Information and Comparison Rate Warning

Amid the huge number of Aussies putting more money in their bank accounts, deposit and savings rates have continued to decline in September, as they have done previously.

Term deposit rate changes

A large number of banks have continued to cut deposit rates throughout September, with a few increases scattered here and there.

As of August 2020, the average term deposit rate across all terms was just 0.75% p.a, with no single term above 1% p.a on average.

This average has fallen slightly to 0.73% p.a in September.

The most high profile deposit rate change this month is that of ANZ, which cut various deposit rates by up to 45 basis points, while increasing others by up to 25.

Westpac (as well as its subsidiary banks St. George, BankSA and Bank of Melbourne) also cut numerous term deposit rates by up to 15 basis points.

ANZ generally has the lowest rates among the big 4's term deposits, according to the table below.

Deposit amount

Compare

Provider	Interest rate	Interest frequency	Term	Automatic Rollover	Maturity Alert	Early Withdrawal Available	Minimum Deposit	Joint Application	Online Application	as ofMay 1, 2025

	3.90^%_p.a.	Annually	12_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 12 months
Term Deposit - 12 months More details
	3.90^%_p.a.	Annually	12_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	50000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit (>$50,000) - 12 months
Term Deposit (>$50,000) - 12 months More details
	3.90^%_p.a.	Annually	12_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	ANZ Advance Notice Term Deposit - 12 months
ANZ Advance Notice Term Deposit - 12 months More details
	3.90^%_p.a.	Annually	12_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 12 months
Term Deposit - 12 months More details
	3.30^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 6 months
Term Deposit - 6 months More details
	3.30^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	ANZ Advance Notice Term Deposit - 6 months
ANZ Advance Notice Term Deposit - 6 months More details
	3.20^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 6 months
Term Deposit - 6 months More details
	3.20^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	50000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit (>$50,000) - 6 months
Term Deposit (>$50,000) - 6 months More details

Term Deposit - 6 months

Product Features

$0 monthly account fee
Choose your own term with options from one month to five years.
Guaranteed rate of return

Minimum deposit$5,000

4.60%Interest rate p.a.

6Term

More details

Important Information and Comparison Rate Warning

Other key term deposit rate changes to occur in September include:

Judo Bank: Decreased term deposit rates by up to 10 basis points
BOQ: Decreased term deposits by as many as 10 basis points
UniBank, Teachers Mutual Bank: Decreased term deposit rates by up to 35 basis points
ME: Decreased term deposit rates by up to 10 basis points
Qudos Bank: Decreases rates by up to 0.15 basis points
Greater Bank: Decreased term deposit rates by up to 15 basis points
AMP: Decreased term deposit rates by up to 25 basis points
RACQ: Cut term deposit rates by up to 30 basis points

The infographic below showcases how much deposit rates have changed over the last 18 months or so.

Savings account rates

While savings account rate cuts aren't as frequent as term deposits, there have still been a few significant changes over the past few weeks.

On Wednesday, Neobank Volt, which is still in the beta stage after months, cut the total interest rate on its savings account by 20 basis points from 1.65% p.a. to 1.45% p.a.

Earlier in the month, the RAMS Saver account was cut again to 0.90% p.a in total, after being cut from 1.10% p.a the month before.

This is a far cry from the +3% p.a. interest rate this account had as recently as 2019.

The CUA eSaver Reward account was cut to a maximum rate of 1.45% p.a. after having a total rate of 1.70% p.a in April.

The table below features savings accounts with some of the highest non-introductory and introductory interest rates on the market.

Deposit amount

Compare

Provider	Base interest rate	Max interest rate	Total interest earned	Introductory Term	Minimum Amount	Maximum Amount	Account Keeping Fees	Min. Monthly Deposit	Min. Opening Deposit	Linked account required	ATM Access	EFTPOS Facility	as ofMay 1, 2025

	Bonus rate of 5.35%Rate varies on savings amount. 0.05^%_p.a.	5.40^%_p.a.	^$1,107		^$0	^$99,999	0	1000	0	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	More details
FEATURED	Savings Maximiser Deposit at least $1,000+ each month from an external source Make 5 or more eligible transactions. Grow your savings balance each month
Disclosure
FEATURED Savings Maximiser Deposit at least $1,000+ each month from an external source Make 5 or more eligible transactions. Grow your savings balance each month More details Disclosure
	4.00^%_p.a.	Intro rate for 4 monthsthen 4.00% p.a. 5.45^%_p.a.	^$905	4	^$0	^$249,999	0	0	1	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	More details
FEATURED	High Interest Savings Account (<$250k) Bonus rate for the first 4 months from account opening No account keeping fees No minimum balance
Disclosure
FEATURED High Interest Savings Account (<$250k) Bonus rate for the first 4 months from account opening No account keeping fees No minimum balance More details Disclosure
	Bonus rate of 5.10%Rate varies on savings amount. –	5.10^%_p.a.	^$1,044		^$0	^$99,999	0	0	0	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	More details
FEATURED	Save Account Deposit $500+ per month from an external source to earn the bonus interest. Tiered rates apply to savings balances.
Disclosure
FEATURED Save Account Deposit $500+ per month from an external source to earn the bonus interest. Tiered rates apply to savings balances. More details Disclosure

High Interest Savings Account (<$250k)

Product Features

Bonus rate for the first 4 months from account opening
No account keeping fees
No minimum balance

Total interest earned$905

4.00 % Base interest rate

5.45 % Max interest rate

Intro rate for

then

4.00%

More details

Important Information and Comparison Rate Warning

William Jolly

William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

Articles

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Monthly Repayment Figures

Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.

Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you.

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Household deposits are up during the pandemic: Are there any good interest rates?

Term Deposit - 6 months

Term Deposit - 6 months

Fixed Term Deposit - 6 months

Fixed Term Deposit - 6 months

ME Bank Term Deposit - 6 months

ME Bank Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 11 months

Term Deposit - 11 months

Term deposit rate changes

Term Deposit - 12 months

Term Deposit - 12 months

Term Deposit (>$50,000) - 12 months

Term Deposit (>$50,000) - 12 months

ANZ Advance Notice Term Deposit - 12 months

ANZ Advance Notice Term Deposit - 12 months

Term Deposit - 12 months

Term Deposit - 12 months

Term Deposit - 6 months

Term Deposit - 6 months

ANZ Advance Notice Term Deposit - 6 months

ANZ Advance Notice Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit (>$50,000) - 6 months

Term Deposit (>$50,000) - 6 months

Savings account rates

Savings Maximiser

Savings Maximiser

High Interest Savings Account (<$250k)

High Interest Savings Account (<$250k)

Save Account

Save Account

William Jolly

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Important information

Editorial Integrity

Advertiser Disclosure

Product Coverage and Sort Order

Comparison Rate Warning and Base Criteria

Monthly Repayment Figures

Related Brands

General Advice Disclosure

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