- ANZ and Macquarie Bank have lifted their top term deposit rates to 4.25% p.a.
- It's the top rate currently being offered by the 'big five' banks
- Rates have been rising across the term deposit market in recent weeks as another cut to the cash rate seems increasingly unlikely in the near term
Two of Australia's 'big five' banks have raised their top term deposit rates to 4.25% p.a. on Wednesday.
ANZ is offering its best rate on an eight-month investment for amounts between $5,000 and under $2 million with interest paid end of term.
It's a jump of 0.25% on the old rate with the rate dropping as follows for customers wanting more regular interest payments:
- 4.24% p.a. for semi-annual payments
- 4.21% p.a. for quarterly payments
- 4.20% p.a. for monthly payments
ANZ's new top term deposit rate is matching Macquarie's new top rate on six-, nine- and 12-month investments for amounts between $5,000 and $1 million.
Macquarie offers the same rate on amounts up to $2 million via the ongoing variable rate on its popular savings account.
Macquarie has also adjusted rates on other terms and balances as follows:
| Term | New rate (% change) | Balance amount | Interest paid |
| 3 months | 4.15% p.a. (+0.05) | $5,000- $1m | End of term |
| 3.95% p.a. (+0.05) | $1,000,001-under $10m | End of term | |
| 4 months | 4.15% p.a. (+0.05) | $5,000-$1m | End of term |
| 3.90% p.a. (+0.05) | $1,000,001-under $10m | End of term | |
| 6 months | 4.25% p.a. (+0.15) | $5,000-$1m | End of term |
| 4.00% p.a. (+0.15) | $1,000,001-under $10m | End of term | |
| 9 months | 4.25% p.a. (+0.20) | $5,000-$1m | End of term |
| 4.00% p.a. (+0.15) | $1,000.001-under $10m | End of term | |
| 1 year | 4.25% p.a. (+0.25) | $5,000-$1m | End of term |
| 4.00% p.a. (+0.25) | $1,00,001-under $10m | Annually |
Macquarie's increases follow a rates hike last month which saw it outstrip the best offerings of the big four banks.
ANZ also lifts its top rate after an increase last month.
Why are term deposit rates increasing?
Term deposit rates have been on the rise across the market as prospects of another cut to the cash rate seem more unlikely.
This is historically a trigger for deposit-takers to make their term deposit rates more attractive in a bid to secure a more stable source of funds.
It generally coincides with them expecting increased demand for fixed-rate home loans down the track.
Over the past month, four of the big five banks and a swathe of smaller deposit-takers have lifted their term deposit rates.
Thirty-six providers moved rates in November, up from 29 the month prior, and almost all in a positive direction.
Westpac remains the only big bank with top term deposit rate without a '4' in front, offering 3.90% p.a. for an 11-month investment, but that could change soon.
The top rate on the term deposit market, according to the Savings.com.au database, is 4.45% p.a. offered by perennial market leader Judo Bank on a 12-month investment for amounts between $1,000 and $2 million with interest paid on maturity.
Judo bettered its previous best rate on Friday.
Macquarie throwing the gauntlet
Macquarie Bank is currently on a tear in increasing its share of Australia's deposit market.
The latest APRA figures for October show the bank's retail and business deposit book has cracked the $200 billion mark for the first time, giving it a 6.3% market share.
Its household deposits have more than tripled over the past four years, on target to reach more than $100 billion in the first half of 2026.
Market analysts attribute its rapid growth to retirees with large savings balances switching to its no conditions savings account product which pays an ongoing variable interest rate of 4.25% p.a. interest on balances up to $2 million.
See also: Macquarie Savings Accounts: 2025 Review
Macquarie is one of few deposit takers on the market to offer a high-interest savings account product with no strings attached.
See also: Compare high interest savings accounts
Its business deposits are also 16% higher over just the last year, as self-managed super funds also switch to its no conditions, no fees business deposit product.
See also: SMSF savings accounts and how they work
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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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.25% 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 | – | – |
