ING, Bank of Sydney hike term deposit rates, NAB moves on savings
The last couple of weeks have seen something of a minor rally for term deposit rates, which have been steadily falling through most of this year.
Judo Bank recently announced its top rate (five months) would once again be back at 4.40% p.a. after a brief window with no TD products in our database returning above 4.35% p.a.
While no new market leaders were announced last week, there were several providers that significantly boosted returns.
It might not be coincidental that this TD rate spike has coincided with fresh speculation over when the next cash rate cut will fall - if there even is one.
NAB made waves last Wednesday when it officially walked back its forecast for a rate cut in November and another in February.
Australia's third largest bank is now predicting there will be no more easing of monetary policy until May 2026, when there will be one more cut before reaching a terminal cash rate of 3.35%.
The central bank's forecast steadying of the ship appears to have cut through to retail deposit rates.
ING varies rates by up to 30 bps
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
|---|---|---|---|
| Three months | $10,000-$5m | End of term | 3.75% p.a. (-0.30) |
| Six months | $10,000-$5m | End of term | 4.15% p.a. (+0.10) |
| Nine months | $10,000-$5m | End of term | 3.90% p.a. (-0.20) |
| One year | $10,000-$5m | End of term | 4.10% p.a. (+0.10) |
| Two years | $10,000-$5m | End of term | 4.00% p.a. (+0.30) |
ING Bank is back competing in the TD market with major boosts to six month and one year rates.
These hikes are a significant signal to the market that ING means business again - its top rates of 4.15% p.a. and 4.10% p.a. are both well above anything else on offer at other big banks.
With three and four month rates trimmed, ING appears to be focused on the long run with the new top two year rate of 4.00% p.a. also catching the eye.
A terminal cash rate of 3.35% is above most predictions from earlier this year, and if this becomes the prevailing view we may see more lenders hiking longer term deposit products with confidence that the bar for interest rates isn't likely to drop too much further.
Gateway Bank hikes nine month, one year rates
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
|---|---|---|---|
| Nine months | $1,000+ | End of term | 4.00% p.a. (+0.05) |
| Six months | $1,000+ | End of term | 4.15% p.a. (+0.10) |
Savings account rate movements
Two of the big banks also adjusted savings accounts rates last week.
NAB has lifted the rate on its Reward Saver account by 0.05% to 4.15% p.a.
The base rate remains unchanged at 0.10% p.a. with the new variable bonus rate 4.05% p.a. for customers making at least one deposit and no withdrawals during the month.
Meanwhile, Westpac has rejigged the interest rate structure on its Life savings account.
The top interest rate of 4.25% p.a. is now made up of a 0.25% p.a. standard variable base rate (down from 0.40% p.a.) and a 4.00% base rate (up from 3.85% p.a.).
The bonus interest rate is paid each month if the account balance has grown; the lower base rate makes it more important to meet the criteria every month.
The change also applies to Incentive savings accounts offered by other banks in the Westpac group: St George, Bank of Melbourne, and BankSA.
Finally, IMB Bank has also beefed up the introductory bonus interest rate by 0.25% p.a. on its Reward Saver and Kick Start savings accounts while reducing the standard variable rate by the same amount.
The top rate is now 4.50% p.a. for the first four months with an introductory bonus rate of 2.00% p.a. and an ongoing standard variable rate of 2.50% p.a. to new customers.
It's available on balances up to $1 million for customers who deposit a minimum $50 a month and make no withdrawals.
Other movers
- Australian Unity Bank cut TD rates 0.25%. Its new top rate is 4.20% p.a. for six months
- Bank Australia and Qudos Bank hiked one year rates 10 bps to 4.00% p.a.
Advertisement
Looking to lock away your savings and earn interest? Below is a selection of term deposit products with 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 | – | – |
