The RBA revealed what most of Australia was expecting on Tuesday - that the cash rate will remain at 3.60% until at least February next year.
The tone from Governor Michele Bullock was interpreted by many as much more hawkish, leaving open the possibility that the next move will be a hike at the post-meeting press conference.
"I don't think there are interest rate cuts on the horizon for the foreseeable future," Ms Bullock told media.
"The question is, is it just an extended hold from here or is [there the] possibility of a rate rise, I couldn't put a probability on those, but I think they're the two things the board will be looking closely at coming into the new year."
While those words likely dismayed many mortgage holders, it could mean competition in the term deposit market, already heating up over the past few weeks, could become more fierce.
This week saw a new market-leading three-month rate, as well as hikes from several Australian banks.
For now the top rate in the Savings.com.au database is still 4.45% p.a., but it might not be long before the 4.5% mark is cracked once again.
Commonwealth Bank hikes by up to 15bps
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
|---|---|---|---|
| Three months | $50,000-$1,999,999 | End of term | 3.00% p.a. (+0.15) |
| Six months | $5,000-$49,999 | End of term | 3.10% p.a. (+0.10) |
| Six months | $50,000-$1,999,999 | End of term | 3.15% p.a. (+0.10) |
| Nine months | $50,000-$1,999,999 | End of term | 3.30% p.a. (+0.10) |
| One year | $50,000-$1,999,999 | End of term | 3.80% p.a. (+0.10) |
| One year (special offer) | $5,000-$1,999,999 | End of term | 4.10% p.a. (+0.10) |
| 13-17 months | $50,000-$1,999,999 | Annually | 3.80% p.a. (+0.10) |
Australia's biggest bank hiked across its range of term deposits on Friday, although almost all its products still return below 4% p.a.
The exception is a one year special offer (available to existing customers only) which had rates boosted by another 10 bps to hit 4.10% p.a.
It's the same top rate as that offered by Westpac and sees CBA surpassing NAB.
Although the top TD rate among the big four remains at ANZ, which offers 4.25% p.a. for eight months.
Unity Bank, G&C Mutual Bank hike three month rates by 40bps
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
|---|---|---|---|
| Three months | $1,000+ | End of term | 4.40% p.a. (+0.40) |
The merged Unity Bank and G&C Mutual Bank put up three month TD rates by 40 basis points this week, which saw the product hitting a new top rate of 4.40% p.a..
That's the highest three month rate in the Savings.com.au database and only 5 basis points lower than highest rate in general (Judo Bank and Heartland Bank both offer 4.45% p.a. for one year terms).
Customers depositing $100,000 could potentially earn $1,100 in three months' time (returns subject to income tax), while those depositing $1 million could receive $10,110.
Bank Australia, Qudos Bank hike by up to 40bps
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
|---|---|---|---|
| Three months | $500+ for Bank Australia, $2,000 + for Qudos | End of term | 4.20% p.a. (+0.05) |
| Six months | $500+ for Bank Australia, $5,000 + for Qudos | End of term | 4.35% p.a. (+0.10) |
| Nine months | $500+ for Bank Australia, $5,000 + for Qudos | End of term | 4.35% p.a. (+0.15) |
| One year | $500+ for Bank Australia, $5,000 + for Qudos | End of term | 4.35% p.a. (+0.15) |
| Two/three years | $500+ for Bank Australia, $5,000 + for Qudos | Annually | 4.20% p.a. (+0.20) |
Other movers
- Bank of Us hiked rates by up to 25 basis points, now advertises a top rate of 4.25% p.a. for six month terms
- Arab Bank Australia hiked six month rates 10 basis points to a top rate of 4.30% p.a.
- Gateway Bank hiked one year rates 5 basis points to a top rate of 4.35% p.a.
- Australian Military Bank put up one year rates 35 basis points to 4.20% p.a.
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| 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 | – | – |
