There are great deals to be had on term deposit in Australia right now. The banks are battling for your savings, resulting in extremely favourable term deposit rates.

Major banks such as Westpac have been offering 6 month term deposit rates of over 6 per cent. Westpac’s subsidiary, St.George also matched its parent’s offer to be offering the highest term deposit rate in the market. These offers, gone now, demonstrates there are some the best term deposit rates on the market we have seen in some years, though you do have to shop and compare term deposits to find them.

The big 4 banks (Westpac, Commonwealth, ANZ and NAB) are no longer offering the highest term deposit rates. Smaller online players do not have the expense of a vast branch network and are  increasingly becoming more competitive.

Term deposit rates are not quite as high as they were before the GFC, however the RBA cash rate was 7.25 per cent then compared with only 4.50% now.  Relative to the RBA cash rate and inflation, the current term deposit rates are extremely generous.

But the party will not last forever. Eventually the requirement for local deposits will fade as global funding pressures ease. Now might be the best time in years to secure the best term deposit rate.