Term deposit rates falling

Term-deposit rates have fallen by about 0.3 of a percentage point recently and bankers say they might fall further.

Most people like to put their money in three- or six-month terms but if rates keep falling, you might need to think about going longer to lock in rates while you can still get 6 per cent or more.

InfoChoice says 22 deposit takers have cut their six-month rates in the past month. Twenty-five deposit takers have cut their nine-month rates, with the average falling 0.35 of a percentage point from 5.53 to 5.18 per cent.

Forty-three deposit takers have cut their one-year rates, with the average coming down 0.2 of a percentage point from 5.94 per cent to 5.74 per cent. Going against the trend, three-month rates have gone up by an average of 0.19 of a percentage point.

Source: Sydney Morning Herald

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