We highlight the 4% rates and above, still available for a short term fixed deposit that avoids the risks of an intervening 'variable' rate change

If you have funds you would like to lock away for a short time and earn interest, a term deposit it an option.

Today, Macquarie Bank has reduced some of these rates however. It took -10 bps off its three, four and six month rates. But that still left them with better rate offers for these terms than the other major banks.

Interest rate offers for a term less than one year are set out in the table below. They are modest offers although you can still earn  4% locked in from a number of banks. Bank of Queensland and ING are the standouts.

But you could actually earn a higher rate by choosing a 'welcome' rate from many of these banks, including the largest, Commbank who offer 4.60% for four months on this 'welcome' basis. But you are taking a risk with savings accounts that they will be decreased over the term. Savings account rates are 'variable' at the bank's discretion.

Here is a list of current short term deposit rates fixed for the terms indicated, for a deposit of $50,000.

Among the big banks, Macbank's 4.00% for four months looks attractive, and Westpac's 3.90% for eleven months does too.

But higher rates can we accessed at the challenger banks, especially Bank of Queensland and ING.