There's nothing like a cut to the official cash rate to get the retail market shaking up its interest rates.
Banks and non-bank lenders are usually happy to spruik how quickly they've passed on cuts to their lending rates although can be a little more circumspect about dropping their deposit rates.
While savings account rates generally fall in line with movements to the official cash rate, term deposit rates tend to run their own race.
And at the moment, that is overwhelmingly downhill. Good for their Strava times.
Rate fixers have been steadily lowering rates for months prior to this year's two cash rate cuts and it seems they're seeing more on the horizon.
CBA cuts special offer rate... then the rest
Australia's largest bank first cut the rate is uses to lure term deposit customers then followed it up with across-the-board cuts.
CommBank's "limited time only" special offer rate is now 4.00% p.a. - a 10 basis point cut on the old rate - for a 12-month deposit for amounts between $5,000 and $1,999,999 with interest paid annually.
Its CBA's only term deposit rate with a '4' in front and is available to renewing personal or SMSF customers only.
Here is a rundown of CBA's new term deposit rates for deposit amounts between $5,000 and under $50,000:
| Term | New rate (% change) | Interest paid |
| 4 months | 2.95% p.a. (-0.05) | End of term |
| 5 months | 3.00% p.a. (-0.10) | End of term |
| 6 months | 3.05% p.a. (-0.10) | End of term |
| 7 months | 3.15% p.a. (-0.10) | End of term |
| 8 months | 3.29% p.a. (-0.01) | End of term |
| 9 months | 3.25% p.a. (-0.10) | End of term |
| 10 months | 3.30% p.a. (-0.10) | End of term |
| 11 months | 3.35% p.a. (-0.10) | End of term |
| 12 months | 3.60% p.a. (-0.10) | Annually |
| 13-17 months | 3.55% p.a. (-0.10) | Annually |
| 18-23 months | 3.50% p.a. (-0.15) | Annually |
| 24-33 months | 3.45% p.a. (-0.15) | Annually |
| 34-35 months | 3.45% p.a. (-0.15) | Annually |
The rates drop for more frequent interest payments while there have also been wholesale rate cuts of up to 15 basis points for deposit amounts between $50,000 and under $2 million.
But, there are better rates on the market, with a couple of deposit-takers even lifting some of their offerings this week, so let's head to greener pastures.
Judo lifts 6-month rate to market high
Judo Bank is notorious for being among the main players on the term deposit leaderboard and this week has lifted its six-month rate to a market-leading 4.55% p.a., an increase of 10 basis points.
It joins Gateway Bank and G&C Mutual in offering 4.55% p.a. for six-month deposits, according to the Savings.com.au database.
The Judo rate applies to amounts between $1,000 and $2 million with interest paid end of term.
The online bank is also offering the same rate to its business and SMSF term deposit customers.
For personal depositors wanting monthly payments, the rate is 4.45% p.a. for six months, also an increase of 10 basis points.
Macquarie nudges 6-month rate higher
Macquarie has also lifted its six-month rate, taking it to 4.05% p.a. - a five basis point rise.
The rate applies to deposits between $5,000 and $1 million dollars with interest paid end of term.
Macquarie's current highest rate is 4.20% p.a. for three months.
Most of the major banks adjusted a raft of their term deposit rates in the wake of the May cash rate cut although Macquarie tends to be more discerning with its changes.
ING cuts up to 25 basis points
Now, back to the cutters.
There was no mucking around with the Dutch-owned online bank, swiping up to 25 basis points from some of its shorter-term rates this week.
ING's new highest rate is 4.25% p.a. for seven months, a modest five basis point rise on the old rate for deposits between $10,000 and $5 million.
Here's a look at the new rate line-up for that amount:
| Term | New rate (% change) | Interest paid |
| 3 months | 4.10% p.a. (-0.25) | End of term |
| 4 months | 4.00% p.a. (-0.25) | End of term |
| 6 months | 4.15% p.a. (-0.10) | End of term |
| 7 months | 4.25% p.a. (+0.05) | End of term |
| 9 months | 3.95% p.a. (-0.20) | End of term |
| 11 months | 4.10% p.a. (+0.10) | End of term |
Hunter partners trim rates
The merged Newcastle Permanent and Greater Bank have taken 10 basis points from their six- and 12-month rates, along with three-year rates.
Their best new rate is now 4.25% p.a. for amounts over $5,000 invested for six-months with interest paid end of term.
The 12-month rate has dropped out of the 4% club and is now 3.90% p.a. for end of term interest payment and 3.80% p.a. for interest paid monthly.
The same rates are being offered for three-year deposits.
Military Bank cuts up to 20 bp
Australian Military Bank is generally no slouch when it comes to term deposit rates, but it's taken 10 basis points off its handsome six-month rate, dropping it to 4.45% p.a.
The rate applies to its Investment Plus product for amounts between $1,000 and $250,000 and its Teen Plus product where the minimum amount drops to $500.
Both are for end of term interest payments.
Its six-month Income Plus product for those wanting monthly interest payments has also taken a 10-basis point haircut to 4.35% p.a. for those investing a minimum amount of $1,000.
Its shorter-term rates (for 12 month terms and under) have also been dropped by up to 20 basis points.
Arab Bank slices across the board
The rate-fixers at Arab Bank Australia had a busy week, making wholesale cuts to a range of term deposit rates for varying time periods and balances.
The wash-up leaves the best new rate at 4.35% p.a. for six months for balances between $10,000 and $500,000 with interest paid end of term.
It's a drop of 15-basis points, leaving it as the only rate offering with a '4' in front.
IMB drops TD special rates
IMB Bank has dropped its special rates for three-, six-, and 12-month term deposits taken out online.
The new rates for amounts above $5,000 are as follows:
| Term | New rate (% change) | Interest paid |
| 3 month Special | 4.35% p.a. (-0.10) | End of term |
| 6 month Special | 4.15% p.a. (-0.10) | End of term |
| 12 month Special | 3.90% p.a. (-0.10) | End of term |
Other rate movers
- While leading the market for its six-month term deposit rate, Gateway Bank has shaved five basis points off its nine- and 12-month rates to 4.25% p.a. and 4.15% p.a. respectively.
- The Mac has taken 10 basis points off its six-month rate, taking it to 4.30% p.a. for amounts between $5,000 and $500,000 with interest paid end of term.
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Harry O'Sullivan
Denise Raward
Bernadette Lunas
Dominic Beattie
