Are term deposits good value right now?

A term deposit is a savings account product that gives you a fixed rate of return for agreeing to lock your money away for an agreed term. Term deposit interest rates have fallen along with the RBA official cash rate.

However inflation has also fallen to historically low levels. Economists predict that the RBA may cut rates again. These two factors indicate that now could be a good time to lock a reasonable rate around 3 per cent or above with a term deposit.

Often term deposits with longer terms deliver higher rates of return.