These weekly term deposit rate wraps are starting to feel a bit like a casualty list.
ANZ is the latest major bank to cut back, taking its top rate level with CBA and NAB, while several of the higher rates out there were also curbed.
A 0.50% rate cut remains the likeliest outcome of the May RBA decision according to the ASX RBA tracker, although the balance of probability has evened out recently as the ASX has slowly recovered from the sharp declines of early April.
Term deposit rates continue to fall away, so if you're interested in a fixed term investment, it might be a good time to get a move on and lock on one of the few strong rates still remaining.
ANZ cuts rates by up to 10 bps
| Term length | Deposit size | Payment frequency | Interest rate |
|---|---|---|---|
| Three month | $5,000-$1,999,999 | End of term | 2.90% p.a. (-0.10) |
| Six month | $5,000-$1,999,999 | End of term | 3.20% p.a. (-0.10) |
| Eight month | $5,000-$1,999,999 | End of term | 4.20% p.a. (-0.05) |
With these latest cuts, the top TD rate at ANZ drops to 4.20% p.a., the same as Commonwealth Bank (for 10 months) and NAB (for seven months).
The highest rate available among the big four is at Westpac, where existing customers who open an 11 month term online can earn 4.30% p.a..
Big hitters cut rates
The big banks have tended to offer significantly lower rates than many smaller outfits, but this week saw three of those heavy hitters trim rates this week.
Gateway Bank cut rates by up to 15 bps, including its three month rate which was previously higher than any in our database, which falls to 4.60% p.a..
Its top rate is now 4.75% p.a. for six month terms, which is 0.10% behind from Credit Union SA, the highest in our database.
Both Community First Bank and Illawarra Credit Union cut six month rates from 4.80% p.a. to 4.65% p.a., 0.20% back from Credit Union SA.
ING varies rates by up to 0.25%
| Term length | Deposit size | Payment frequency | Interest rate |
|---|---|---|---|
| Three month | $10,000-$5m | End of term | 4.35% p.a. (+0.10) |
| Six month | $10,000-$5m | End of term | 4.25% p.a. (-0.25) |
| Nine month | $10,000-$5m | End of term | 4.20% p.a. (-0.15) |
ING seemingly pivoted its term deposit strategy this week, shifting its marquee rate from six months to three months.
Its new three month rate of 4.35% p.a. is higher than any of the other 10 biggest banks in Australia by household deposits.
However, Suncorp Bank remains the overall leader among the 10 big boppers, with a 4.40% p.a. top rate on four month term deposits and 4.55% p.a. for six months.
AMP Bank hikes rates 10 bps
| Term length | Deposit size | Payment frequency | Interest rate |
|---|---|---|---|
| Five month | $25,000-$10m | End of term | 4.50% p.a. (+0.10) |
| Six month | $25,000-$10m | End of term | 4.50% p.a. (+0.10) |
This products are also available for smaller deposits with a 0.05% rate discount.
BankVic varies rates by up to 80 bps
| Term length | Deposit size | Payment frequency | Interest rate |
|---|---|---|---|
| Five month | $5,000-$5m | End of term | 4.50% p.a. (+0.80) |
| Six month | $5,000-$5m | End of term | 4.30% p.a. (-0.15) |
Other movers
- The Mutual Bank cut rates by up to 30 bps
- Heritage Bank cut by up to 40 bps
- Great Southern Bank cut by 10 bps
- Summerland Bank cut rates by up to 20 bps
- Bank of Us cut rates up to 15 bps
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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.
Provider | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 1000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
| FEATURED | Personal Term Deposits - 6 months
| ||||||||||||
Disclosure | |||||||||||||
Personal Term Deposits - 6 months
Disclosure
| |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 5000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
| FEATUREDManage your term deposit online | Term Deposit - 6 months
| ||||||||||||
Disclosure | |||||||||||||
Term Deposit - 6 months
Disclosure
| |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 5000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 25000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 25000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit ($25,000+) - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 5000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Macquarie Bank Term Deposit (<$1,000,000) - 6 months | |||||||||||||
- Competitive interest rates on all term lengths
- Deposits covered up to $250,000 under Government's Finance Claims Scheme
- Loyalty bonus at renewal
Picture from ANZ
Bernadette Lunas
Denise Raward
Harrison Astbury
