Home News Major banks, ex-market leaders cut term deposit rates

Major banks, ex-market leaders cut term deposit rates

With CommBank, Macquarie, Heartland Bank and numerous others among the latest term deposit rate casualties, returns above 4.50% p.a. are becoming increasingly rare.

By Harry O'Sullivan

First published on 30 May 2025

Fact Checked

Major banks, ex-market leaders cut term deposit rates

This week brought a fresh round of TD rate reductions from the major banks, not to mention a few ex-market leaders.

When lenders cut home loan rates you can rest assured they will also move to reduce their cost of funding, so the onslaught shouldn't come as a surprise to even the most optimistic of term deposit enthusiasts.

TD rates beginning with a 5 are now about as common in Australia as the thylacine - if you find either, please write in and let us know.

The benchmark for a quality return is becoming 4.50% p.a. with a few products that still crack this threshold after the latest cuts:

Strongest TD rates in our database (30 May)

Bank Term length Minimum deposit Interest rate (paid at maturity)

MOVE Bank Four months $5,000 4.70% p.a.

Arab Bank Australia Six months $10,000 4.60% p.a.

MOVE Bank Five months $5,000 4.60% p.a.

Credit Union SA Five months $1,000 4.60% p.a.

Gateway Bank Six months* $1,000 4.60% p.a.

*Details below

Bank	Term length	Minimum deposit	Interest rate (paid at maturity)
MOVE Bank	Four months	$5,000	4.70% p.a.
Arab Bank Australia	Six months	$10,000	4.60% p.a.
MOVE Bank	Five months	$5,000	4.60% p.a.
Credit Union SA	Five months	$1,000	4.60% p.a.
Gateway Bank	Six months*	$1,000	4.60% p.a.

This week's rate cuts

Commonwealth Bank, NAB and Macquarie Bank were the two biggest names of this weeks round of term deposit rate cuts.

Australia's biggest bank slashed basically its entire range to all now sit well below 4% p.a. - with the exception of its latest special offer rate of 4.10% p.a. for one year.

That rate is available for a limited time, exclusively to existing retail or business banking customers, and is 0.30% lower than the one year rate at G&C Mutual Bank (4.40% p.a.).

NAB went further, with its highest rate now just 4.00% p.a. for seven month terms after widespread cuts.

At Macquarie, three, four, and six month rates were on the chopping block, taking its top rate down to 4.20% p.a. for three months.

Elsewhere, Heartland Bank cut its six month rate down to 4.55% p.a., nine month down to 4.40% p.a..

Gateway Bank was another ex-heavy hitter to cut, although the 0.05% cut still leaves its top products among the strongest on market, as we touched on above.

Other movers

Qudos Bank cut rates by up to 60 bps, leaving a new top rate of 4.15% p.a. for six month terms
Community First Bank and Police Bank also cut.

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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.

Deposit amount

Compare

Provider	Interest rate	Interest frequency	Term	Automatic Rollover	Maturity Alert	Early Withdrawal Available	Minimum Deposit	Joint Application	Online Application	as ofJune 1, 2025

	4.45^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	1000	$product[$field["value"]]	$product[$field["value"]]	More details
FEATURED	Personal Term Deposits - 6 months Competitive interest rates on all term lengths Deposits covered up to $250,000 under Government's Finance Claims Scheme Loyalty bonus at renewal
Disclosure
FEATURED Personal Term Deposits - 6 months Competitive interest rates on all term lengths Deposits covered up to $250,000 under Government's Finance Claims Scheme Loyalty bonus at renewal More details Disclosure
	4.50^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
FEATUREDManage your term deposit online	Term Deposit - 6 months $0 monthly account fee Choose your own term with options from one month to five years. Guaranteed rate of return
Disclosure
FEATUREDManage your term deposit online Term Deposit - 6 months $0 monthly account fee Choose your own term with options from one month to five years. Guaranteed rate of return More details Disclosure
	4.50^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 6 months
Term Deposit - 6 months More details
	4.55^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	25000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 6 months
Term Deposit - 6 months More details
	4.50^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	25000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit ($25,000+) - 6 months
Term Deposit ($25,000+) - 6 months More details
	4.00^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Macquarie Bank Term Deposit (<$1,000,000) - 6 months
Macquarie Bank Term Deposit (<$1,000,000) - 6 months More details

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 June 1, 2025. View disclaimer.

Important Information and Comparison Rate Warning

Picture by Josh Appel on Unsplash

Harry O'Sullivan

Harry joined Infochoice Group in November 2022 as a financial journalist. He's fascinated by economics, having completed a Bachelors Degree in 2021, and enjoys helping other people try to make sense of the financial system.

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Major banks, ex-market leaders cut term deposit rates

Strongest TD rates in our database (30 May)

This week's rate cuts

Other movers

Personal Term Deposits - 6 months

Personal Term Deposits - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit ($25,000+) - 6 months

Term Deposit ($25,000+) - 6 months

Macquarie Bank Term Deposit (<$1,000,000) - 6 months

Macquarie Bank Term Deposit (<$1,000,000) - 6 months

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