- New market-leading term deposit rates of 5.20% p.a. have emerged after the Reserve Bank's decision to raise the cash rate
- It marks a new high in the current upcycle as the busy term deposit market reacts to the Tuesday's cash rate increase
- Commonwealth Bank also lifted its Special Offer 12-month term deposit rate on Wednesday
It didn't take long for the hyperactive term deposit market to react to the Reserve Bank's call to lift the official cash rate on Tuesday afternoon.
Less than 24 hours later, new market-leading 5.20% p.a. term deposit rates have emerged, tempting cash holders to lock away their spare funds for fixed periods.
Of course, term length is the unknown variable at this stage of the current RBA hiking cycle with the majority of market analysts believing there will be another hike to the 4.10% cash rate in May.
Judo offers 5.20% p.a. for five years
For those looking to stash their cash long term, the plucky Judo Bank is offering a market-leading 5.20% p.a. for a five-year deposit on balances between $1,000 and $2 million with interest paid annually.
Judo's new market-topping rate for general depositors is among a raft of its new term deposit rates announced on Wednesday morning, including a market-equalling 5.10% p.a. top rate for a 12-month deposit.
That rate was only launched on Tuesday morning, hours before the RBA decision, offered by merger partners Bank Australia and Qudos Bank.
Gateway Bank matches the offer
Customer-owned Gateway Bank also joined the fray on Wednesday morning, equalling the market-topping 5.10% p.a. 12-month rate.
Gateway's rate applies to balances between $1,000 and $500,001, with interest paid annually.
It's also offering a six-month rate of 4.90% p.a. for the same balance amount with interest paid end of term.
Great Southern also offers 5.20% p.a.
Not to be outdone, Great Southern Bank, which hiked its term deposit rates last week, lifted its rates again on Wednesday by up to 25 basis points.
Its best new rate is 5.20% p.a. on its Platinum Plus product accessible to depositors aged 55 and over.
It applies to deposit amounts of $5,000 to less than $100 million with interest paid end of term.
The rate drops to 5.10% p.a. for those choosing monthly interest payments.
CBA special offer rate overshadowed
The rates movements at the top of the market leave those offered by banking's largest player, Commonwealth Bank, in the shade.
CommBank announced a 0.10% lift in its Special Offer 12-month rate to 4.80% p.a. for deposits between $5,000 and $5 million where interest is paid annually.
CommBank also increased its two-year rates across the board for lower and higher deposit amounts.
Its best new two-year rate is 4.85% p.a. which applies to deposit terms of 24-33 months on balances between $50,000 and $5 million.
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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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.35% 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 | – | – |
