- ANZ has varied its term deposit rates with its top return now 4.35% p.a.
- That's higher than anything else currently on offer at the big four banks.
- It folllows savings account returns on the ANZ plus products also being boosted, with ANZ seemingly making moves to improve its share of the deposit market.
The top TD rate at ANZ is now 4.35% p.a., available for deposits between $5,000 and $1,999,999 for terms between 12 and 24 months.
That's 10 basis points (bps) above the top rates at Commonwealth Bank and NAB (both at 4.25% p.a. for one year) and 25 bps ahead of Westpac's current top return.
It's also only five bps behind the top rates at ING and Macquarie Bank, which are currently the highest TD returns among the top ten banks in Australia by customer deposit book size.
However, all the majors still have plenty of ground to make up on the frontrunners - Australian Military Bank currently offers the highest rate in the Savings.com.au database at 4.70% p.a. for nine, ten, or eleven month terms.
These changes cap off another big week for term deposit returns in Australia, as expectations grow that the cash rate will be hiked once again in the coming months.
Read more: Latest TD rates from NAB and Macquarie
ANZ term deposit rate changes
| Term length | Deposit Size | Payment frequency | Interest rate (change) |
|---|---|---|---|
| Eight/nine months | $5,000-$1,999,999 | End of term | 3.20% p.a. (-1.05) |
| 12-24 months | $5,000-$1,999,999 | Annually | 4.35% p.a. (+0.60) |
| Eight/nine months | $5,000-$1,999,999 | Monthly | 3.17% p.a. (-1.03) |
| 12-24 months | $5,000-$1,999,999 | Monthly | 4.27% p.a. (+0.58) |
It's been a bit of a restructure of ANZ's term deposit range, with its top rate previously available for eight/nine month terms.
Those rates were curbed significantly by more than 100 bps, but the shift to longer term returns being higher may suggest ANZ is positioning itself for an extended period without any further interest rate cuts.
ANZ deposit book play continues?
These latest changes from ANZ come less than a fortnight after it boosted its highest ongoing savings account rates back to 4.25% p.a., level with the highest ongoing rates at Commonwealth Bank and Westpac.
There's a couple of ways to interpret this - some may take it as a sign ANZ is expecting a hike at the February monetary policy decision, although even after the shock drop in unemployment the bank continues to officially predict a hold.
However, it could be a strategic move to improve its deposit share, with the bank currently lagging behind the other three major banks according to APRA data.
Macquarie Bank, currently with the fifth largest deposit book, is also closing the gap, and its products have the extra advantage in that its top rate is unconditional.
Read more: ANZ hike savings account rates