Bank of Sydney looks to lure savers with some of its short term term deposits

With rates still high but possible cuts at the start of next year, savers will have to make a choice between short and long term interest rates.

Providers like Bank of Sydney are currently offering short term rates that could be useful for parking your cash in for a few months. For example, the bank's 3-month term deposit now offers a 4.85% p.a. interest rate, while its 6-month and 9-month term deposits provide a 5.20% p.a. and 5.10% p.a, respectively.

The bank's decision to boost its short-term term deposit rates is particularly noteworthy given the recent actions of other players in the market. For instance, Judo Bank recently increased its 3, 6, 9, and 12-month rates, with its 6, 9, and 12-month rates all sitting at 5.25% p.a.

Why savers should consider short term rates

Some savers can be tempted to lock in rates for as long as possible. However, short term rates come with some advantages of their own. It all depends on the current market conditions and keeping an eye on interest rate movements.

Shorter term deposits are great if you’re thinking about locking cash up for a brief period while they’re still high. They’re also useful if you need that cash in the near future (for instance, 6 months from now) and want to try and get as much interest on it at a predictable rate.

If you want to explore more shorter term rates, you can head over to our term deposit page or compare some providers in the tables below.