ANZ on Thursday hiked its Advance Notice Term Deposits for the 8-month term by 20 basis points, bringing the top rate back to the 4% mark.
This came less than a week after CommBank raised its special offer TD rate by 0.20%.
ANZ and CommBank are now the only major Australian banks offering term deposit rates at 4.00% p.a., and the first two to raise rates following RBA's unanimous hold.
Current ANZ term deposit rates
Term length | Interest rate (change) | Deposit size | Payment frequency |
8 months | 4.00% p.a. (+20bps) | $5,000 - $1,999,999 | End of term |
8 months | 3.99% p.a. (+20bps) | $5,000 - $1,999,999 | Semi-annually |
8 months | 3.97% p.a. (+20bps) | $5,000 - $1,999,999 | Quaterly |
8 months | 3.95% p.a. (+20bps) | $5,000 - $1,999,999 | Monthly |
The rate is available for newly opened or renewed Advance Notice Term Deposit accounts, with a minimum investment of $5,000 and a maximum of $1,999,999.
As the name suggests, ANZ's Advance Notice Term Deposits require customers to give at least 31 days' notice to break the term early.
Up or down: Where will term deposit rates head?
A day after the RBA decided to keep the cash rate at 3.60%, a few banks immediately moved to increase returns on select term deposit products.
Australian Military Bank, BCU Bank, and P&N Bank raised their term deposit rates by between 20 and 40 basis points.
The boosts were applied to terms no longer than nine months.
This week, People's Choice and Heritage also hiked term deposit rates on 6-month terms, up 10 bps to 3.95% p.a., just 5 bps shy of the 4% threshold.
However, both banks also made a flurry of cuts across their range of TD products, ranging from one month to five years.
The mixed movements suggest banks do not expect cash rate cuts in the near future, with all major banks forecasting a prolonged hold well into next year.
Though ANZ maintains its view that a rate reduction will arrive in early 2026 and will be kept at 3.35% for an extended period.
"We still expect the RBA will cut the cash rate one final time next year, likely in February," ANZ senior economist Adelaide Timbrell said.
The 4.3% unemployment rate unveiled today, along with the 3.2% inflation rate, support the 'rates on hold' camp.
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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 | – | – |
