90% of term deposits are less than 12 months

Not all term deposits are equal. Around 90 per cent of them have a term of less than 12 months, according to figures quoted by the director of banking research and analysis firm RFi, Alan Shield.

A breakup of Rabobank’s total term deposits portfolio shows nearly 63 per cent of all their inflows are going to term deposits of one year or less.

Forty-two per cent of that is in a term deposit of less than 12 months. Another 23 per cent of inflows are going towards term deposits of five years. The rest of their inflows go towards two, three and four deposits.

Source: Money Management