- ING has announced a new market leading six month term deposit rate
- Customers can earn 5.10% p.a. on balances of at least $10,000 locked away for half a year
From December 17, ING customers can earn 5.10% p.a. on six month term deposits of $10,000 or above.
This is now the highest six-month rate on the market, following Judo’s recent cut to its six-month return to 5.05% p.a. and narrowly edging out Heartland Bank and its 5.09% p.a. rate.
Heartland still offers 5.15% p.a. for nine month TDs.
This hike from ING is going against the grain – the Australian term deposit looks to be generally cooling as we close out 2024.
While the RBA kept the cash rate at 4.35% last Tuesday, a 'dovish pivot' in the accompanying statement saw market expectations on rate cuts shift.
As of 16 December, the ASX RBA rate tracker put the probability of a cut to 4.10% in February at 62%.
Shifting sentiment has seen Judo Bank and some other providers cut back term deposit rates recently, but this unexpected hike shows the outlook remains far from certain.
How much could you earn?
ING's top rate is available on balances from $10,000 all the way to $5,000,000, with interest paid at the term end.
If you opened an account tomorrow, here's how much you could earn on various sized deposits when the term concludes around June 2025.
| Deposit Size | Interest After Six Months |
|---|---|
| $10,000 | $255 |
| $100,000 | $2,550 |
| $500,000 | $12,750 |
| $1,000,000 | $25,500 |
Of course, these returns will be subject to your marginal tax rate.
Time to lock in?
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Looking for a fixed income investment? Check out some of the top term deposits in Australia
| 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 | – | – |
