Term deposit rates keep rising ahead of potential cash rate hike

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on May 27, 2022 Fact Checked
Term deposit rates keep rising ahead of potential cash rate hike

ING, Bankwest, Beyond Bank, Regional Australia Bank and more hiked term deposit rates by up to 165 basis points.

In about two weeks' time the RBA is set to meet again to decide the fate of the cash rate target.

It's widely speculated that the Reserve Bank will hike the cash rate for the second month in a row.

CBA economists have tipped four more 25 basis point hikes to take place this year with another pencilled in for early next year.

Term deposit rates have been climbing for the past few months, but with more cash rate hikes potentially on the horizon, this trend may continue.

Also read: What's next for the RBA?

Bankwest hikes term deposits by up to 165 basis points

Bankwest increased its Gold Term Deposits and Online Term Deposits, now offering rates of up to 2.15% p.a.

Gold Term Deposits:

  • 24 months, paid end of term: 165 basis point increase to 2.15% p.a.
  • 24 months, paid semi-annually: 164 basis point increase to 2.14% p.a.

Online Term Deposits:

  • 2 years, paid annually: 165 basis point increase to 2.15% p.a.
  • 2 years, paid quarterly: 163 basis point increase to 2.13% p.a.

ING term deposits hit 2.50% p.a.

ING increased interest rates on three of its term deposits by up to 100 basis points.

  • 270 days, paid end of term: 60 basis point hike to 1.5% p.a.
  • 1 year, paid annually: 60 basis point hike to 2% p.a.
  • 2 years, paid annually: 100 basis point hike to 2.5% p.a.

Regional Australia Bank term deposits head towards 3% p.a.

Regional Australia Bank increased its term deposits by up to 165 basis points. The bank increased various 'Term Savings' products.

  • 18 months, paid end of term: 165 basis point increase to 2.00% p.a.
  • 18 months, paid annually: 110 basis point increase to 2.00% p.a.
  • 36 months, paid monthly: 80 basis point increase to 2.15% p.a.
  • 60 months, paid monthly: 100 basis point increase to 2.55% p.a.

Beyond Bank term deposits almost hit 2% p.a.

Beyond Bank increased six of its term deposits by 100 basis points.

  • 2 years, paid annually: 100 basis point hike to 1.95% p.a.
  • 2 years, paid annually: 100 basis point hike to 2.00% p.a.
  • 2 years, paid monthly: 100 basis point hike to 1.80% p.a.
  • 2 years, paid monthly: 100 basis point hike to 1.90% p.a.

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Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for a six-month term. 

Lender

At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details

Term Deposit - 6 months

    Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

    Personal Term Deposit - 6 months (Annually)

      At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details

      Term Deposit - 6 months ($10k-$250k)

        Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

        Edvest Term Deposit I20 ($1000-$499999) - 6 months

          Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

          Term Deposit I10 ($1000-$499999) - 6 months

            Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]250000$product[$field["value"]]$product[$field["value"]]More details

            Term Deposit ($250k+) - 6 Months

              Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

              Term Deposit (> $1000) - 6 months

                Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details
                FLEXIBLE INTEREST AND REPAYMENT TERMS
                • Interest can be paid to other institution
                • Automatic maturity rollover
                • Early Withdrawal Available
                FLEXIBLE INTEREST AND REPAYMENT TERMS

                Term Deposit (<$1m) - 6 months

                • Interest can be paid to other institution
                • Automatic maturity rollover
                • Early Withdrawal Available

                Rates based on a $50,000 deposit for 6 months. Rates correct as of June 29, 2022. View disclaimer.


                Image by Towfiqu Barbhuiya on Unsplash

                Disclaimers

                The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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                author-avatar
                Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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