The Commonwealth Bank term deposit special offer - available only to existing customers - is now 4.25% p.a. for one year.
That's higher than the one year rate at the other big four banks and the joint highest of any TD return, level with ANZ for eight months.
Compared to the rest of the market though, Commbank is still 35 bps behind the top one year rate in the Savings.com.au database - Australian Military Bank at 4.55% p.a.
It's also 15 bps behind ING's one year rate (4.40% p.a.) which is currently the highest among the ten biggest banks in Australia by customer deposits.
Latest term deposit rates from Commonwealth Bank
As well as the special offer, Commbank also boosted its returns for term lengths between 18 and 23 months by 20 bps:
| Term length | Deposit size | Payment frequency | Interest rate (change) |
|---|---|---|---|
| 18-23 months | $5,000-$50k | Annually | 3.95% p.a. (+0.20) |
| 18-23 months | $50k+ | Annually | 4.00% p.a. (+0.20) |
| 18-23 months | $5,000-$50k | Semi-annually | 3.90% p.a. (+0.20) |
| 18-23 months | $50k+ | Semi-annually | 3.95% p.a. (+0.20) |
| 18-23 months | $5,000-$50k | Monthly | 3.85% p.a. (+0.20) |
| 18-23 months | $50k+ | Monthly | 3.90% p.a. (+0.20) |
Commbank banking on February hike?
Commonwealth Bank economists were the first of the big four to officially predict the RBA will need to hike the cash rate in February to bring inflation back under control.
November inflation however, while still above target, came in under expectation, which has since seen market expectations shift towards expecting a hold rather than a hike at next months monetary policy meeting.
Nevertheless, the Commbank economics team stuck to its guns, maintaining a hike will still be necessary even after the November CPI.
"While the headline figure was a touch softer than we expected, measures of underlying inflation remain firm," Commbank Economist Harry Ottley said.
"Our preliminary assessment of the underlying data leaves us comfortable with our forecast for a Q4 25 trimmed mean outcome of 0.9% per quarter....this is an uncomfortable number for the RBA."
This latest boost to term deposit returns could be interpreted as another sign Australia's biggest bank is planning for the RBA to take the cash rate back to 3.85%.
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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 | – | – |
