- NAB and Westpac raised their top term deposit rates on Monday
- They now match the highest offering of the big four banks after CommBank increased its best rate last week
- All four major banks have lifted their top term deposit rates over the last week as the market prepares for another cash rate hike
NAB raised its top term deposit rate to 5.30% p.a. on Monday morning, followed by Westpac matching it hours later.
The moves end CommBank's three-day bragging rights in claiming the big four's best term deposit rate.
CommBank had upped its 12-month special offer rate to 5.30% p.a. on Friday - the second lift to the rate in a week - to maintain the jump on its major bank rivals.
All four big banks raised their best term deposit rates over the last week, ending with CommBank 10 basis points clear of the pack on Friday.
See also:
- ANZ joins big four term deposit party but new rate steals the show
- Westpac, NAB, ING lift term deposit rates
NAB, Westpac stay in the race
Perhaps with footy finals fever in the air, NAB decided to match CommBank's 5.30% p.a. for a 12-month deposit with interest paid annually - a jump of 10 basis points on its old rate.
It also lifted rates on select seven-to-11 month terms by up to 15 basis points, all on deposit amounts between $5,000 and $1,999,999.
Later on Monday, Westpac adjusted its 12-month special offer rate to 5.30% p.a. but only for existing customers opening or renewing their term deposits online.
A rate of 5.20% p.a. applies to those choosing to open or renew in-branch.
Westpac's special offer deal is for deposits of $5,000 to $2 million with customers able to choose between annual, half-yearly, or monthly interest payments.
The new rates will also apply to other brands in the Westpac group: St George, Bank of Melbourne, and BankSA where the minimum deposit drops to $1,000.
Big Four Leaderboard: 12-month term deposits
| Bank | Rate | Balance amount | Interest paid | Conditions |
| CommBank | 5.30% p.a. | $5,000 - $5m | Annually | Opened or renewed by personal or SMSF customers# |
| Westpac | 5.30% p.a.* | $5,000 - $2m | Monthly, half-yearly, or annually | *Existing Westpac customers opening or renewing online only# |
| NAB | 5.30% p.a. | $5,000 - $1,999,999 | Annually | - |
| ANZ | 5.20% p.a. | $5,000 - $1,999,999 | Annually | - |
(#CommBank and Westpac conditions)
See also: Compare big four term deposit rates
Term deposit market spinning higher
The latest big bank movements continue the flurry of rate hikes on the term deposit market in recent weeks as banks lay the ground for another expected increase in the Reserve Bank cash rate.
On Monday, economists at CommBank and ANZ joined NAB economists in tipping a cash rate hike next week with both banks moving their forecasts forward from November.
ANZ now expects there will be two cash rate increases in both September and November.
Term deposit rates reflect where banks expect interest rates to be in the future while they compete to secure depositor funds in a rising interest rate environment.
Around two dozen banks have adjusted their term deposit rates offerings so far in September.
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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 | – | – |
