- AMP Bank has launched new market leading term deposit rates.
- At 5.15% p.a. for six months AMP now offers the joint highest rate on the Australian market.
- The 5.00% p.a rate for three month products is also a market leading return.
The highest TD rate at AMP is now 5.15% p.a. for six month terms with a deposit of $25,000 or above.
That's the highest six month return on market, and equal to Heartland Bank's nine month TD as the overall top rate in Australia.
For three months, the new AMP rate of 5.00% p.a. beats out Judo Bank and the aforementioned Heartland, both of which currently offer 4.95% p.a. for three month terms.
Nine, 10 and 13 month terms saw rates reduced, but otherwise movement was all upward, returns boosted by up to 0.30%.
RBA tea leaves for 2025
While plenty of Australians will be pleased with these stronger fixed term investment options, many more are likely more concerned about whether this points towards a longer delay to RBA cash rate cuts.
The term deposit market started to drop off at the back end of 2024 - just as expectations shifted towards an earlier start for easing monetary policy.
As of 7 January, the ASX RBA rate tracker suggested markets are ascribing a 73% chance the RBA will cut rates to 4.10% at the first meeting of the year in February.
However many economists have pencilled in May 2025 as the first cutting month, citing strong labour force figures and other economic data released at the end of 2024, despite tempering inflation.
For mortgage holders worried higher deposit returns could suggest less chance of those elusive cuts, it's worth remembering there's more to banks' rate strategy than simply trying to anticipate the RBA.
As Chief Retail Banking Officer at Bank of Sydney, Huw Bough, told the Savings Tip Jar podcast last year, this time of year often sees increased interest in term deposits.
"The better periods of time [are] around...the post Christmas period, that's when we're able to attract even more deposits," he told the podcast.
Accordingly this would suggest banks are more likely to launch competitive rates to take advantage of increased demand, so a February rate cut remains a strong possibility.
Without an RBA board meeting in January though, the Australian public are largely flying blind as they awake from their Christmas slumber.
AMP Bank new term deposit rates
| Term length (LVR) | Deposit size | Payment frequency | Interest rate |
|---|---|---|---|
| Three months | $5,000 - $24,999.99 | End of term | 4.95% p.a. (+0.10) |
| Six months | $5,000 - $24,999.99 | End of term | 5.10% p.a. (+0.15) |
| Nine months | $5,000 - $24,999.99 | End of term | 5.00% p.a. (-0.05) |
| Ten months | $5,000 - $24,999.99 | End of term | 4.75% p.a. (-0.10) |
| Twelve months | $5,000 - $24,999.99 | End of term | 4.90% p.a. (-0.05) |
| Three months | $25,000 - $10,000,000 | End of term | 5.00% p.a. (+0.10) |
| Six months | $25,000 - $10,000,000 | End of term | 5.15% p.a. (+0.15) |
| Nine months | $25,000 - $10,000,000 | End of term | 5.05% p.a. (-0.05) |
| Ten months | $25,000 - $10,000,000 | End of term | 4.80% p.a. (-0.10) |
| Twelve months | $25,000 - $10,000,000 | End of term | 4.95% p.a. (-0.05) |
| Thirteen months | $5,000 - $24,999.99 | Annually | 4.35% p.a. (-0.05) |
| Two years | $5,000 - $24,999.99 | Annually | 4.45% p.a. (+0.30) |
| Two years | $25,000 - $10,000,000 | Annually | 4.50% p.a. (+0.30) |
More frequent interest payments are available in exchange for a slight rate discount.
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Looking for a fixed income investment? Check out some of the top term deposits in Australia
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.25% p.a. | At Maturity | 6 months | $5,000 | $19,999 | – | – | |||||||||||||
5.20% p.a. | At Maturity | 6 months | $10,000 | $5,000,000 | – | – | |||||||||||||
5.15% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – |
