CBA, NAB cut term deposit rates - is it time to switch?

Two of the Big 4 banks have begun trimming their term deposit rates in step with possible upcoming RBA cuts. 

Both Commonwealth Bank and NAB reduced rates across various terms over the past week. However, other providers seem to still be in a “wait and see” mode. This presents a somewhat confusing landscape for savers.

So let’s take a closer look at the most recent cuts and where you can potentially find a better rate if your term deposit is about to reach maturity.

Big 4 term deposit cuts

The Commonwealth Bank's cuts are as follows:

• Reductions of 10-20 basis points across multiple 12 and less terms
• Similar cuts (down to 2.90% p.a.) applied to longer term deposits of 36, 48, and 60 months
• Current rates now include (between $5,000 and $49,999):
  • 2.95% p.a. for 3-month terms
  • 3.05% p.a. for 4-month terms
  • 3.45% p.a. for 8-month terms
  • 4.15% p.a. for 10-month terms

This is only a summary of the cuts - be sure to check specific term rates before choosing a product. 

NAB's cut rates are as follows ($5,000 and $1,999,999 balance):

• 12-month term cut by 20 basis points from 4.40% to 4.20% p.a.
• 5-year term reduced by 20 basis points from 3.10% to 2.90% p.a.
• Current rates now include:
  • 3.00% p.a. for 3 month terms
  • 3.15% p.a. for 4 month terms
  • 4.60% p.a. for 8 month terms
  • 3.70% p.a. for 10 month terms

This is only a summary of the cuts - be sure to check specific term rates before choosing a product. 

Term deposit alternatives in early 2025

With term deposit rates a little in flux, it might be difficult to figure out which providers are offering good value right now. Therefore we’ve compiled a list of averages below, and a sample of leading rates across the providers we track in the Mozo database to give you a starting point for your comparison.

*Based on a $25,000 deposit in personal account, as at February 10, 2025.

Several providers have rates above the averages, as per the following examples from the Mozo database:

For short-term savers (3-6 months):

• Bank of Sydney and RACQ 3 month term deposit leads at 4.95% p.a. 
• Heartland bank leads 9 month terms at 5.05% p.a.

For those looking at longer terms:

• 12-month terms are led by Family First Bank’s Special Term Deposit at 5.05% p.a.
• Judo bank leads on rates 2-5 years in length at 4.70% p.a. (2 year) 4.60% p.a. (3 year) and 4.50% (4 and 5 year).

Looking to switch? You can check out more providers on our term deposit hub page and compare your options.

Always keep in mind that your comparison should go beyond the interest rate offered as each product is different. For example, some have fees and in most cases you can't switch term deposits without a penalty.