Term deposit rates keep rising ahead of potential cash rate hike

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.

Advertisement

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. 

Image by Towfiqu Barbhuiya on Unsplash