The Commonwealth Bank (CBA) yesterday announced it would be increasing its 12-month term deposit interest rate by 60 basis points, to a new interest rate of 1.70% p.a. 

NAB followed CBA's lead but bettered the offer, today unveiling a 10-month term deposit with an interest rate of 1.75% p.a.   

The table below displays one-year term deposits with some of the highest interest rates on the market. 

Provider

At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • Guaranteed rate of return
  • Manage your term deposit online
  • $0 monthly account fee

Term Deposit - 12 months

  • Guaranteed rate of return
  • Manage your term deposit online
  • $0 monthly account fee
At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2500031$product[$field["value"]]$product[$field["value"]]More details

Term Deposit - 12 months

    At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500007$product[$field["value"]]$product[$field["value"]]More details

    Wealth Builder Term Deposit - 12 months ($50,000+)

      Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

      Personal Term Deposit - 12 months (Annually)

        At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2500031$product[$field["value"]]$product[$field["value"]]More details

        Term Deposit ($25k-$5m) - 12 months

          At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10008$product[$field["value"]]$product[$field["value"]]More details

          Online Term Deposit - 12 months

            Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

            Term Deposit ($1000-$500001) - 12 months

              Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

              Term Deposit - 12 months

                At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

                Term Deposit ($5k-$500k) - 12 months

                  At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

                  Term Deposit ($5k-$25k) - 12 months

                    At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]50001$product[$field["value"]]$product[$field["value"]]More details

                    Fixed Term Deposit - 12 Months ($500+)

                      At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2500031$product[$field["value"]]$product[$field["value"]]More details

                      Term Deposit - 12 months (Monthly)

                        Annually, At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details

                        Term Deposit ($10000+) - 12 months

                          Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

                          Term Deposit ($1000+) - 12 months

                            At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500000$product[$field["value"]]$product[$field["value"]]More details

                            Fixed Term Deposit ($500000+) - 12 months

                              Annually, At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

                              Term Deposit ($5000+) - 12 month

                                At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2000$product[$field["value"]]$product[$field["value"]]More details

                                Term Deposit Special - 12 months

                                  Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100000031$product[$field["value"]]$product[$field["value"]]More details

                                  Term Deposit ($1,000,000-$2,000,000) - 12 months

                                    Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10000031$product[$field["value"]]$product[$field["value"]]More details

                                    Term Deposit ($100000+) - 12 months

                                      Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details

                                      Term Deposit - 12 months

                                        Important Information and Comparison Rate Warning

                                        All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of May 26, 2024. View disclaimer.

                                        CBA's new term deposit rate is available from today for all eligible new and existing CBA personal customers on balances from $5,000 to $2 million, for a limited time only.

                                        “For our deposit customers, we will increase our 12 month term deposit rate by 60 bps to 1.70% p.a," CBA CEO Matt Comyn said. 

                                        "This will be available to all personal customers, but will especially benefit older Australians relying on their savings.

                                        "It will ensure all Australians are now able to earn a return on their savings which is more than 1.45% higher than the official cash rate."

                                        NAB's new term deposit rate will be available from March 24 for personal customers on balances between $5,000 and $2 million. 

                                        Westpac and ANZ are expected to make similar announcements later today. 

                                        While these new term deposit rates are comfortably now among the highest deposit rates offered by the big four, it's important to remember that 1.70% p.a is still fairly small in the grand scheme of things. 

                                        The current inflation rate is 1.80%, meaning any interest earned on this deposit would not earn customers any real return. 

                                        Other term deposit changes 

                                        Term deposit interest rates have been in freefall lately thanks to recent cash rate cuts - yesterday marked the first time in our history that the Reserve Bank of Australia (RBA) has cut the cash rate twice in a single month. 

                                        Just in the past couple of weeks, a host of major and larger banks have made sizeable cuts to their term deposit products, including:

                                        • UniBank and Teachers Mutual Bank decreasing term deposit rates by 25 basis points (20 March)
                                        • People's Choice Credit Union decreasing term deposit rates by up to 35 basis points (20 March)
                                        • BOQ decreasing term deposit rates by up to 55 basis points (20 March)
                                        • CUA increasing term deposit rates by up to 15 basis points (19 March), decreasing by up to 25 (12 March)
                                        • ING decreasing term deposit rates by up to 30 basis points (18 March) 
                                        • G&C Mutual Bank decreasing term deposit rates by up to 30 basis points (18 March)
                                        • Westpac, St. George, BankSA and Bank of Melbourne decreasing term deposit rates by up to 25 basis points (17 March) 
                                        • AMP increasing term deposit rates by up to 35 basis points (17 March)
                                        • MyState Bank increasing term deposit rates by up to 50 basis points (17 March)
                                        • Macquarie Bank decreasing term deposit rates by up to 15 basis points (16 March) 
                                        • Citi increasing term deposit rates by up to 16 basis points (16 March)
                                        • ANZ decreasing various term deposit rates by up to25 basis points (13 March)

                                        Some banks have increased various deposit rates, and these have been highlighted in bold. 

                                        The average term deposit interest rate, across all terms, has now plummeted to roughly 1.35% p.a, a truly dismal number considering where rates used to be not even a year ago. 

                                        Xinja savings account rate remains at 2.25% 

                                        Meanwhile, Xinja has reiterated to customers that it is not cutting its market-leading savings account interest rate following the RBA's emergency cash rate cut. 

                                        In an email to customers yesterday, the neobank's CEO Eric Wilson said Xinja's 'Stash' interest rate remains at 2.25% for now.

                                        "That’s not to say we won’t change it in the future (it is a variable rate) however not yet," Mr Wilson wrote in the email. 

                                        "We thought you’d like to know. We do hope you are doing ok through these strange & uncertain times."

                                        Xinja's Stash savings account remains closed to new customers after the neobank announced earlier this month it was pausing new applications to preserve its high interest rate for existing customers. 

                                        The table below displays a snapshot of available savings accounts with some of the highest non-introductory interest rates on the market. 

                                        Provider

                                        02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                        No monthly fees
                                        • Download the App to open your account
                                        • Get better visibility of your spending within App!
                                        • Deposit $200 per month to activate bonus interest
                                        No monthly fees

                                        Save Account

                                        • Download the App to open your account
                                        • Get better visibility of your spending within App!
                                        • Deposit $200 per month to activate bonus interest
                                        010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                                        Savings Maximiser (<$100k)

                                          010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                                          Boost Saver

                                            Important Information and Comparison Rate Warning

                                            All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of May 26, 2024. View disclaimer.