- G&C Mutual and Unity Bank have significantly boosted advertised term deposit returns.
- At 4.80% p.a. for six- and nine-month terms and 4.90% p.a. for one-year deposits, the merged entity now offers the highest rates among comparable products on the market.
- These rates are available for interest paid at the end of term, for deposits of $1,000 or more.
The recently-merged entity now offer 4.80% p.a. for six- and nine-month month term deposits and 4.90% p.a. for one-year deposits.
That's 10 basis points (bps) ahead of ING and Judo Bank offer on deposits for six months, and beats Heartland Bank by two bps for one-year terms, meaning both products are now above other comparable products in the Savings.com.au database (although Judo offers 4.86% p.a. for eight months).
The term deposit market continues to heat up, with economists predicting a prolonged period of high interest rates.
The latest move from G&C and Unity came as ANZ changed its official cash rate prediction to a hike at the May RBA meeting on Thursday.
It also follows a long run of recent rate increases from the likes of Macquarie Bank and Judo, while the big four are also offering more competitive returns.
Some longer-term products have already cracked the 5% mark and, at the market's current pace, it may not be long before shorter-term rates starting with a '5' start appearing.
Time to lock in?
For many Australians looking for a fixed-term investment, the question of the moment is likely whether to lock in a TD now or hold off in the hope that stronger returns are around the corner.
Markets are pricing in at least one more rate hike in 2026 and, with prices growing 3.8% over the twelve months to January, there's little sign that easing inflation could start to shift this outlook.
Most recent RBA modelling suggests both headline and trimmed mean inflation will stay above target until at least 2027.
Thus, many economists feel that there's little chance of rates dropping from the current 3.85% until then.
This may spell higher returns for term deposit enthusiasts down the line.
Although, it should also be noted that banks tend to price in cash rate expectations for term deposit rates rather than just adjusting with the RBA (unlike savings accounts), so some currently-available rates may already assume future rate hikes.
For now though, there's little sign of the market losing momentum.
These increases from G&C and Unity mean that the top one-year rate in the Savings.com.au database has increased by 0.30% since the RBA hiked the cash rate earlier this month.
G&C Mutual/Unity Bank new term deposit rates
| Term length | Deposit size | Payment frequency | Interest rate (change) |
|---|---|---|---|
| Six months | $1,000-$100m | End of term | 4.80% p.a. (+0.40) |
| Nine months | $1,000-$100m | End of term | 4.80% p.a. (+0.35) |
| One year | $1,000-$100m | End of term | 4.90% p.a. (+0.40) |
| Six months | $1,000-$100m | Monthly | 4.75% p.a. (+0.40) |
| Nine months | $1,000-$100m | Monthly | 4.75% p.a. (+0.350) |
| One year | $1,000-$100m | Monthly | 4.85% p.a. (+0.40) |
Judo also hikes
| Term length | Deposit size | Payment frequency | Interest rate (change) |
|---|---|---|---|
| Six months | $1,000-$2m | End of term | 4.70% p.a. (+0.30) |
| Seven months | $1,000-$2m | End of term | 4.40% p.a. (-0.15) |
| One year | $1,000-$2m | End of term | 4.85% p.a. (+0.10) |
| Two/Three/Four years | $1,000-$2m | Annually | 4.85% p.a. (+0.10) |
Meanwhile Judo Bank also adjusted its rates, taking two-, three-, and four-year rates up 10 bps to a new top rate of 4.85% p.a. for interest paid annually.
Six-month rates were boosted 30 bps to a new top rate of 4.70% p.a., but seven-month returns were trimmed back 15 bps to 4.40% p.a.
For one-year rates, Judo is now at 4.85% p.a., 3 bps behind Heartland and 5 bps behind the new G&C and Unity rates.
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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 | – | – |
