CBA lifts term deposit rates as market leaders crash through 5%
- Commonwealth Bank lifted its term deposit rates on Friday, with a new special offer rate of 4.70% p.a.
- It's overshadowed by this week's new market-high term deposit rate of 5.10% p.a. for a five-year term
- There is also a new leading rate of 5.00% p.a. for a 12-month investment
Australia's largest bank has joined the fray as term deposit rates lift across the market with odds firming of another cash rate increase, possibly in less than a fortnight
But the big banks are renowned for their modest term deposit offerings.
As it turns out, Commonwealth Bank's new 'special offer' of 4.70% p.a. for a 12-month deposit on amounts between $5,000 to $5 million was well overshadowed this week by a new 12-month market-high rate (5.00% p.a.) as well as a new top rate overall (5.10% p.a.).
But it seems many depositors prefer the big bank brand names when it comes to storing their cash, even if the returns are a little light on.
Here's a selection of some of CommBank's new term deposit rates (note: the 12-month rate below is outside the special offer deal):
| Term | Rate for $5,000 – $49,999 | Rate for $50,000 – $5m | Interest paid |
|---|---|---|---|
| 3 months | 3.10% p.a. | 3.15% p.a. | End of term |
| 6 months | 3.25% p.a. | 3.30% p.a. | End of term |
| 12 months | 4.50% p.a. | 4.50% p.a. | Annually |
| 24–33 months | 4.50% p.a. | 4.55% p.a. | Annually |
| 60 months (5 years) | 3.95% p.a. | 4.00% p.a. | Annually |
CommBank's special offer rate is available from Friday to personal and SMSF customers opening or renewing online or in branch.
Lower interest rates apply for those opting for more frequent interest payments.
Best big bank term deposit rates
While we're at it, it's worth checking the highest rates currently being offered by the big five. Here they are as of Friday, 6 March:
| Bank | Best TD rate (Term) | Amount | Conditions | Interest paid |
|---|---|---|---|---|
| CommBank | 4.70% p.a. (12 months) | $5,000 – $5m | Special offer (as above) | End of term |
| Westpac | 4.38% p.a. (8 months) | $5,000 – $2m | Special offer until 9 March (Westpac customers opening or renewing online) | At maturity |
| NAB | 4.68% p.a. (24 months) | $5,000 – under $2m | Regular term deposit product | End of term |
| ANZ | 4.35% p.a. (12 months) | $5,000 – under $2m | Regular term deposit product | At maturity |
| Macquarie Bank | 4.85% p.a. (12 months) | $1m and under | Regular term deposit product | At maturity |
There's more on Macquarie Bank's term deposit play below, but let's kick off with this week's new market leading rate.
Rabo breaks the 5% barrier
Rabobank launched its new market-beating 5.10% p.a. five-year term deposit rate on Monday morning, becoming the first deposit-taker to breach the '5%' mark in the current upcycle.
The Dutch-owned online bank is offering the rate on deposit amounts over $500,000 to $2 million, with interest paid annually.
The rate drops to 5.00% p.a. for balances between $100,000 and $500,000.
The lower rate matches Judo Bank's five-year offering with annual interest payments although Judo's minimum deposit amount is $1,000.
Rabo is also offering some handsome new rates for other long-term (one to five year) deposits with the choice of annual, semi-annual, quarterly, or monthly interest payments.
It also lifted some of its three-, six-, and nine-month rates this week by up to 0.20%.
But wait, there's more!
The very next day member-owned Community First Bank launched its limited-time special offer rate of 5.00% p.a. on 12-month term deposits for balances between $10,000 and $1 million.
The deal is available until 31 May - or until allocation has been reached - with interest paid on maturity.
Community First's 5.00% p.a. is now the highest 12-month rate on the Savings.com.au data base, ahead of Heartland Bank's 4.93% p.a. - both for deposit amounts between $10,000 and $1 million.
But Heartland is back on top with the best six- and nine-month rates this week, offering 4.82% p.a. for six months and 4.85% p.a. for nine months for deposit amounts of $10,000 to $1 million with interest paid on maturity.
Heartland's rate increases also end the brief reign of mutual bank partners G&C Mutual and Unity Bank who topped the six- and nine-month rates offerings last week.
Macquarie gets in on the action
Australia's 'fifth big bank' Macquarie Bank also nudged its short-term rates 0.05% higher this week.
Macquarie is now offering 4.85% p.a. for 12-month deposits of between $5,000 and $1 million with interest paid end of term.
The rate drops to 4.70% p.a. for balances over $1 million.
Macquarie's term deposit rates have climbed well ahead of the big four's - even with CommBank's 'special offer'.
This comes after Macquarie Bank revealed last month it held around one percent of the term deposit market and was looking to increase its share.
AMP Bank and AMP GO up TD rates - twice
Not content with one rate hike this week, AMP has shown it means business in the deposit market and lifted its term deposit rates twice.
AMP's plucky online bank AMP GO offers only two term deposit terms - six and 12 months - and the rates for both saw two hikes this week.
AMP GO is now offering 4.95% p.a. for a 12-month deposit of amounts between $5,000 and $10 million with interest paid end of term.
That's not a bad rate if you've got up to $10 million looking for a temporary home.
AMP GO's new six-month rate is 4.80% p.a., just behind Heartland's new 4.82% p.a. offering.
GO's parent AMP Bank also twice lifted its short-term term deposit rates this week with a best offering of 4.90% p.a. for amounts between $25,000 and less than $10 million invested for 11 or 12 months.
The rate drops to 4.85% p.a. for amounts between $5,000 to $25,000.
ANZ-owned Suncorp goes big on rate changes
Suncorp Bank varied a slew of its shorter-term rates this week, some by up to 0.90%.
Some rates were slashed while others were bolstered but in the wash up, Suncorp's best new rate is 4.70% p.a. for a six-month deposit of amounts from $5,000 up to $2 million.
It's the same rate Suncorp is currently offering for an 18-month deposit of the same amount where interest is paid annually.
Other rate movers
Here's a quick look at other notable term deposit rate movements this week:
- Bank of Queensland raised its short-term rates with a new best rate of 4.65% p.a. for 12-23 months months for amounts between $5,000 and $250,000
- BoQ-owned ME Bank goes a little better with a rate of 4.80% p.a. for 12 months for deposit amounts between $5,000 and $2 million
- Bank of Sydney hiked its 12-month term deposit rate to 4.80% p.a. and its six-month rate to 4.70% p.a. for amounts between $10,000 and $1 million with interest paid end of term
- BCU Bank also upped its six- and 12-month rates with a best new rate of 4.70% p.a. for a 12-month deposit of amounts between $1,000 and under $1 million
- Bank First has a best new rate of 4.80% p.a. for a one-year deposit of amounts $500 and over
- Gateway Bank increased its six-month rate to 4.75% p.a. for amounts between $1,000 and $500,001
- The Hunter partners Greater Bank and Newcastle Permanent raised 12-month rates with a best rate of 4.60% p.a. for amounts over $5,000 with interest paid end of term
- Tassie-based Bank of Us increased rates on its term and regular income investment products, offering 4.70% p.a. for amounts between $5,000 and $500,000 deposited for nine months
- Horizon Bank lifted its short-term rates by up to 0.10% with a best new rate of 4.45% p.a. for 12 months
- The Mutual Bank adjusted a raft of term deposit rates, coming up with a best new rate of 4.70% p.a. for a 12-month deposit of amounts between $500,000 and $1 million with interest paid end of term
- Hume Bank is also offering a best new rate of 4.70% p.a. for 12 months on deposits between $1,000 and $1 million with interest paid annually
- Police Bank upped some of its term deposit rates by 1.00% this week with a best new rate of 4.55% p.a. for nine months
- Move Bank increased a range of TD rates on Friday, now offering a best rate of 4.90% p.a. for a 10-month deposit of amounts over $5,000 (see more on Move Bank's savings account offering below)
New leading savings account rate
While we're on the deposit market, there was a new market-high savings account rate of 5.15% p.a. that hit the market this week.
Customer-owned Move Bank upped its high-interest Growth Saver top variable rate to 5.15% p.a., made up of a base rate of 0.10% p.a. and a bonus rate of 5.05% p.a.
See also: The different types of savings accounts interest rates
The rate applies to balances up to $25,000 for account holders who make a minimum monthly deposit of $200 and no withdrawals.
The rate pips Judo Bank's new Savings Account product which offers a top rate of 5.10% p.a. but on balances up to $250,000.
The Judo bonus rate of 5.05% p.a. applies when account holders transfer $300 or more a month into the account with no withdrawal restrictions.
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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 | – | – |
