4.40% p.a. is also the highest TD rate among any of the big four banks - NAB's top rate is 10 bps behind at 4.25% p.a. while the highest return at Westpac remains just 4.10% p.a.
The one-year rate (4.35% p.a.) is a special offer product, only available to existing personal or SMSF customers on balances of between $5,000 and $5,000,000.
Its highest TD return at CommBank is now 4.40 p.a. for terms between two and three years for deposits above $5,000 with interest paid annually, with discounted rates for more frequent interest payments.
That's the meatiest two-year return in the Savings.com.au database, level with Judo Bank.
Deposit returns to continue northwards?
The past few weeks have seen the most substantial surge in term deposit rates since 2022's and 2023's cash rate hikes, amid increasing expectations that the RBA will put the cash rate back up to 3.85% at Tuesday's monetary policy meeting.
All four major banks are officially predicting a 25 bps February rate hike, and economists - including NAB's Taylor Nugent - think there could be a follow up hike in May.
"We expect the [RBA] will remain concerned about capacity pressures and uncertain about policy restrictiveness," he said.
"NAB expects another 25 bp increase in May before an extended pause at 4.1%, a level we see as somewhat restrictive."
While future decisions will depend on how prices and the economy develop this year, if the RBA does hike tomorrow it's likely that term deposit rates will continue to increase over the coming weeks.
The highest rate in the Savings.com.au database at the moment is Australian Military Bank's 4.70% p.a. for nine-, ten-, and eleven-month terms.
Among Australia's biggest banks by customer deposits, Macquarie is currently the term deposit leader with 4.50% p.a. for one year terms.
How much could you earn at 4.40% p.a.?
Here's the potential returns for customers that lock in 4.40% p.a. for the next two years with interest paid annually for various deposit sizes:
| Deposit size | Annual return | Total earnings after two years |
|---|---|---|
| $5,000 | $220 | $440 |
| $50,000 | $2,200 | $4,400 |
| $500,000 | $22,000 | $44,000 |
| $5,000,000 | $220,000 | $440,000 |
Term deposit interest earnings are subject to income tax and returns do not compound.
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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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.35% 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 | – | – |
