Perennial term deposit market leader Judo Bank has lifted its longer-term rates by up to 0.30% after boosting its shorter-term rates last week.
According to the Savings.com.au database, Judo's eight-month rate of 4.40% p.a. tops the market, equalling Australian Military Bank's six-month rate.
Judo now offers rates of 4.00% p.a. or more for one- to five-year terms with interest paid annually.
Here are the new Judo rates for deposit amounts between $1,000 and $2 million:
| Term | New rate (change) | Interest paid |
| 1 year | 4.20% p.a. (+0.30%) | End of term |
| 4.10% p.a. (+0.30%) | Monthly | |
| 2 year | 4.00% p.a. (+0.05%) | Annually |
| 3.90% p.a. (+0.05%) | Monthly | |
| 3 year | 4.10% p.a. (+0.10%) | Annually |
| 4.00% p.a. (+0.10%) | Monthly | |
| 4 year | 4.30% p.a. (+0.10%) | Annually |
| 4.20% p.a. (+0.10%) | Monthly | |
| 5 year | 4.40% p.a. (+0.10%) | Annually |
| 4.30% p.a. (+0.10%) | Monthly |
Judo has also upped its SMSF and Business term deposit rates.
Judo Bank term deposit rates
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
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Heartland Bank continues to lead the 12-month rate market with its one-year rate of 4.25% p.a. according to the Savings.com.au database, although that applies to deposit amounts between $25,000 to under $1 million with interest paid end of term.
Why are term deposit rates heading higher?
Rates on the term deposit market have been trending upwards as the prospect of a near-term cut to the 3.6% cash rate evaporates.
After its last meeting on Melbourne Cup Day, Reserve Bank governor Michele Bullock said it's a possibility there will be no more rate cuts in the current downcycle.
It's a view shared with many economists as the Australian economy gains steam with household incomes lifting, the jobs market remaining tight, and inflation once again on the rise.
With banks not expecting any more cuts to the cash rate, many may be looking to attract stable sources of funding, particularly given the heat in the home lending market.
See also: 2026 property market to see record prices, surging rents
In the past two weeks, three of the big banks - CommBank, ANZ, and NAB - and Macquarie have lifted their best term deposit rates to have a '4' in front.
The big three currently offer a flat 4.00% p.a. best rate on select shorter-term investments while Macquarie offers a top rate of 4.10% p.a. on its four- and six-month terms.
Westpac's best term deposit rate remains its 11-month special of 3.90% p.a. for new or renewed online term deposits.
Other term deposit rate movers
This week, a number of smaller deposit-takers have also moved to lift their term deposit rates.
Here are the highlights:
- Bank of Sydney lifted its best term deposit rate by 0.05% to 4.30% p.a. for six months (online only)
- Gateway Bank upped its six- and 12-month rates, with a new top rate of 4.30% p.a. for a six-month investment
- Great Southern Bank has boosted a raft of shorter-term rates with a top rate of 4.10% p.a. on a six-month term
- Bank of Us has increased its top rate to 4.15% p.a. for amounts over $5,000 invested for four months
- QBank has lifted its range of term deposit rates, with rates 4.00% p.a. or more reserved for deposit amounts between $250,000-$1 million
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Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for 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 | – | – |
