BOQ on Friday took the axe to several of its short-term deposits, trimming up to 10 basis points and bringing some rates below the 4% mark.
With the August cash rate cut now at near certainty, especially after the latest CPI data confirmed that underlying inflation is edging closer to target, term deposit rates above 4% p.a. are becoming few and far between.
If the RBA does deliver the expected 25 basis point cut on 12 August, we could see even more TD rates head downhill.
In the meantime, these term deposit providers jumped ahead and lowered their rates.
BOQ drops best term deposit rates
Australia's seventh-largest bank (by market cap) put its headline rates on the chopping block this week, cutting them by 5 basis points to 4.05% p.a. for deposits locked in for 4 and 6 months.
Bank of Queensland's 7-month term deposit rates were slashed by a much larger 10 basis points to match the returns offered through the 4- and 6-month terms.
BOQ previously adjusted term deposit rates on 20 June, during which its niche 7-month TD rates received a 265 basis point boost.
Here are the latest term deposit rates from BOQ for deposits between $5,000 and $250,000.
| Term | New rate (change) | Payment frequency |
|---|---|---|
| 4 Months | 4.05% p.a. (-5 bps) | End of term |
| 6 Months | 4.05% p.a. (-5 bps) | End of term |
| 7 Months | 4.05% p.a. (-10 bps) | End of term |
| 4 Months | 3.95% p.a. (-5 bps) | Monthly |
| 6 Months | 3.95% p.a. (-5 bps) | Monthly |
| 7 Months | 3.95% p.a. (-10 bps) | Monthly |
ME term deposit rates get the axe too
Per usual, ME Bank moved in chorus with its parent bank BoQ, lowering its best term deposit rates.
The bank shed 5 basis points from its 6-month TD rate, lowering it to 4.15% p.a. (its current best rate) for deposits paying interest at maturity.
Meanwhile, ME applied a larger 10 basis point cut to its 3-month term, bringing its rate down to 4.10% p.a.
See the latest adjusted rates below for deposits starting at $5,000 up to $200,000.
| Term | New rate (change) | Payment frequency |
|---|---|---|
| 3 Months | 4.10% p.a. (−10 bps) | End of term |
| 4 Months | 4.10% p.a. (−5 bps) | End of term |
| 6 Months | 4.15% p.a. (−5 bps) | End of term |
| 3 Months | 4.05% p.a. (−10 bps) | Monthly |
| 4 Months | 4.05% p.a. (−5 bps) | Monthly |
| 6 Months | 4.10% p.a. (−5 bps) | Monthly |
Regular income term deposit cuts
Banks offering regular income term deposits also cut rates this week.
BCU Bank trimmed its regular income TD rates by 10 basis points. Its 5-month term now pays 4.10% p.a. monthly, while the 7-month term offers 3.95% p.a.
Fellow member-owned financial institution Bank First trimmed 10 basis points from its 1-year regular income term deposit, leaving its interest rate at 3.70% p.a., paid fortnightly.
Regular income term deposits pay interest regularly, typically on a fortnightly or monthly basis, providing a steady income stream for savers.
Other movers this week
- Bank of Sydney cuts 9-month term deposits by 5 bps to 4.00% p.a.
- Gateway Bank lowers 3-month term deposit rate by 5 bps.
- The Mac cuts 6-, 9-, and 12-month term deposit rates by 20 bps.
- The Mutual Bank decreases term deposit rates by up to 30 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.
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
4.30% p.a. | At Maturity | 6 months | $5,000 | $10,000,000 | – | – |
| Promoted | Disclosure | ||||||||||
4.40% p.a. | At Maturity | 6 months | $25,000 | $1,000,000 | – | – | |||||||||||||
4.35% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – |
| Promoted | Disclosure | ||||||||||
4.30% p.a. | At Maturity | 6 months | $5,000 | $500,000 | – | – | |||||||||||||
4.30% p.a. | At Maturity | 6 months | $25,000 | $10,000,000 | – | – |
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