With markets rating an August cash rate cut as all but assured, popular online bank ING is going its own way with its deposit rates.
On Friday morning, ING announced it's raising its six-month to two-year term deposit rates so that all up to 12 months are now returning 4% or more.
The catch is it's for deposits $10,000 to $5 million.
For those looking to stash lesser sums without locking their cash away, there are savings accounts still giving better rates - at least for the short term.
See also: Which banks offer savings accounts above 5%?
But make sure you read the fine print.
Now, without further ado, let's check ING's new rates for deposit amounts between $10,000 and $5 million.
| Term | Interest rate | % change | Interest paid |
| 6 months | 4.20% p.a. | +0.05 | End of term |
| 7 months | 4.15% p.a. | +0.05 | End of term |
| 9 months | 4.05% p.a. | +0.10 | End of term |
| 11 months | 4.05% p.a. | +0.05 | End of term |
| 1 year | 4.00% p.a. | +0.05 | End of term |
| 2 years | 3.90% p.a. | +0.10 | End of term |
ING's three- and four-month rates remain unchanged at 4.30% p.a. and 4.25% p.a. respectively.
So, what's the rest of market doing?
But apart from that small island of bounty this week, there were scores of term deposit rates tumbling, some by as much as 50 basis points.
This is despite the cash rate hold in July and comments by RBA Governor Michele Bullock on Thursday suggesting she isn't too fazed by the surprise uptick in unemployment to 4.3%.
Commentators had labelled the shock jobs data as a sure sign the cash rate would be cut in August - some even suggesting it would be by as much as 50-basis points.
But the RBA July meeting minutes should put any speculation of a mega-cut to rest.
The board reiterates its allegiance to its easing of monetary policy in its signature "cautious and gradual manner".
Yet that hasn't stopped Australia's deposit-takers plunging their term deposit rates despite the RBA's minutes also noting wholesale funding rates have eased in volatility since May.
So, with that in mind, let's check the ebbing tide of hearty term deposit rates on the market this week.
Smaller players follow big banks lower
There has been so much downward movement in the market for the best part of a year now, it's difficult to tell who is following who any more.
Last week, we saw two of the big banks NAB and Westpac taking their rates lower - NAB cutting its shorter terms and Westpac pruning its offerings for terms from 10 months up to three years.
See also: Big 4 Term Deposit rates
This week, it's the smaller deposit-takers who have their knives out but, before you look away, it's worth remembering it's the little guys who almost always offer the market's best rates.
Let's check them out.
A trim for Newcastle duo
Merger buddies Newcastle Permanent and Greater Bank have sliced up to 15 basis points from a wide range of their term deposit offerings.
Their new best rate is 4.05% p.a. for six months with interest paid end of term - a 10-basis point trim.
Newcastle will pay it on a deposit of $1,000 or more while Greater requires at least a $5,000 deposit to earn the interest.
Beyond a trim
But it was more than a trim for Beyond Bank which takes the prize for the most dramatic haircut this week.
That's a hefty 50 basis points off its three-month rate, taking it to 3.45% p.a. for amounts between $2,000 and under $50,000 with end-of-term interest.
Its top interest rate of 4.00% p.a. is now reserved for balance amounts above $50,000, also for three months with interest paid at maturity.
Gateway makes measured cuts
Generally no slouch when it comes to term deposit rates, Gateway Bank is still offering 4.30% p.a. for its three month rate for amounts $1,000 and over with interest paid end of term.
The three-month rate remains unchanged although Gateway's six-, nine-, and 12-month rates have seen a modest drop as follows:
| Term | Interest rate | % change | Interest paid |
| 6 months | 4.35% p.a. | -0.05 | End of term |
| 9 months | 4.00% p.a. | -0.05 | End of term |
| 12 months | 3.95% p.a. | -0.05 | End of term |
The rates all apply to minimum deposits of $1,000.
Bank of Sydney stays in the game
Bank of Sydney is another small player that competes in offering attractive term deposit rates.
It's also given a five-basis point trim to some of its rates this week, including its best online-only rate of 4.35% p.a. for six months for amounts between $1,000 and $1 million with interest paid end of term.
Here's a rundown of the new personal rate schedule for that balance amount:
| Term | Interest rate | % change | Interest paid |
| 6 months | 4.35% p.a. | -0.05 | End of term |
| 9 months | 4.05% p.a. | -0.05 | End of term |
| 12 months | 3.95% p.a. | -0.05 | End of term |
| 12 months | 3.90% p.a. | -0.05 | Monthly |
| 13 months | 3.95% p.a. | -0.05 | End of term |
Military Bank cuts 6-month rates
Australian Military Bank is also generally competitive with its term deposit offerings.
It's trimmed its six-month rates this week across its product range, as follows:
| Product name | Interest rate | % change | Interest paid |
| Income Plus | 4.35% p.a. | -0.10 | Monthly |
| Investment Plus | 4.35% p.a. | -0.10 | End of term |
| Teen Plus | 4.35% p.a. | -0.10 | End of term |
Australian Military Bank will pay the rates on deposit balances between $1,000 and $250,000 for Income and Investment Plus products and between $500 and $250,000 for Teen Plus term deposits.
Other rate movers
- HSBC has reduced its shorter-term rates under 12 months by 25 basis points
- RACQ Bank has taken up to 15 basis points off its six-, nine-, and 12-month rates
- IMB Bank has cut up to 25 basis points off selected rates with its best rate a special offer of 4.25% p.a. for three months on amounts $5,000 and above with interest paid end of term
- BankVic has sliced up to 15 basis points off a range of its Term Deposit (I20) and 12 Months Regular Income products
- The Mac has decreased its six-, nine-, and 12-month term deposit rates by 20 basis points
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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.
| Bank | Term Deposit | Interest Rate | Interest Frequency | Term | Automatic Rollover | Maturity Alert | Early Withdrawal Available | Minimum Deposit | Maximum Deposit | Notice Period to Withdraw | Account Keeping Fee | Online Application | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
4.30% p.a. | At Maturity | 6 months | $5,000 | $10,000,000 | – | – |
| Promoted | Disclosure | ||||||||||
4.40% p.a. | At Maturity | 6 months | $25,000 | $1,000,000 | – | – | |||||||||||||
4.35% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – |
| ||||||||||||
4.30% p.a. | At Maturity | 6 months | $5,000 | $500,000 | – | – | |||||||||||||
4.30% p.a. | At Maturity | 6 months | $25,000 | $10,000,000 | – | – |
Image by Mali Maeder via Pexels
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