Whether you already have your savings in a term deposit, or you’re planning to open an account, remember that the money in a term deposit can do more than just help you grow your wealth through interest earnings. At the start of December 2023, just 40% of all savings accounts had raised rates following the RBA hike. For example, following the RBA rate hike in November 2023, the banks and ADIs that raised rates for their savings account and term deposit customers were a relatively short list. Keep in mind that nor every bank or other authorised deposit-taking institution (ADI) may pass on a future rate rise. But with some economists forecasting that the RBA could hike rates again in February 2024 if inflation doesn’t fall fast enough, It may become possible to give your savings an extra boost later in the new year. With the Reserve Bank of Australia (RBA) keeping the national cash rate on hold at 4.35% in December 2023, not a lot of movement is expected for term deposit interest rates in the immediate future.
