Judo increased rates on its 3, 6, 9 and 12 month terms:
- Three month: 23 basis point increase to 0.82% p.a.
- Six month: 20 basis point increase to 0.89% p.a.
- Nine month: 25 basis point increase to 0.94% p.a.
- 12 month: 24 basis point increase to 0.99% p.a.
These rates apply to term deposits that are paid at maturity, however ones paying interest monthly were increased by the same amount albeit at rates 10 basis points lower.
That said, Judo cut its four and five year rates by 20 basis points, now at 1.2% p.a. and 1.4% p.a. respectively, with interest paid annually.
Meanwhile, Commonwealth Bank cut its term deposit rates again, across a whole host of terms.
For example, the 12 month term deposit was cut by 10 basis points and now stands at 0.25% p.a., with interest paid at maturity.
For depositors looking at longer terms, CommBank's five year rate was cut by 5 basis points to 0.30% p.a.
These rates are simple interest, meaning interest does not compound like it does on savings accounts.
Despite CommBank cutting, term deposit rates have been etching upwards lately, with Heritage Bank and G&C Mutual Bank increasing theirs just over a week ago.
On Friday CommBank also increased interest rates on a number of fixed-rate home loans.
Just over the past year, CommBank drew down 100% of its $51.14 billion allocation in the Reserve Bank's Term Funding Facility, which provides banks wholesale funding at an interest rate of just 0.10% over a three year term.
By comparison, Judo Bank drew down $2.86 billion - 33.1% of its total allowance.
Photo by Towfiqu Barbhuiya on Unsplash