Term deposit market heats up as Aussies chase financial security

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on June 17, 2022 Fact Checked
Term deposit market heats up as Aussies chase financial security

Banks continue to increase term deposit rates amid a growing appetite for financial security as clouds hang over the outlook of global finances.

A number of banks have continued their efforts to lock-away savers for a period, increasing term deposit rates this week by up to 230 basis points. 

Major banks in ANZ and NAB increased term-deposit rates in line with their announcement post-RBA decision, pushing 12 month term deposit rates to 2.24% and 2.25% respectively.

The increased appetite for financial security comes as consumer confidence declined to near recessionary levels in June off the back of high inflation, rising interest rates and a contracting economy. 

Following the release of the Westpac-Melbourne Institute Consumer Confidence Index, Westpac Chief Economist Bill Evans said consumer risk aversion has intensified with more consumers nominating debt repayment or capital protected options as the wisest place for savings. 

"Safe or defensive options are now heavily favoured with a rise in the proportion of consumers nominating bank deposits and [to] pay down debt," Mr Evans said.

"Conversely, very few consumers favour riskier options; only 8% nominating real estate and 8% nominating shares."

Bank of Queensland term deposit rates increase 230 basis points

Bank of Queensland (BOQ) has increased rates across a number of monthly term deposits requiring a minimum deposit of $5,000.

  • 3 months, paid monthly: 110 basis point increase to 1.15% p.a.
  • 6 months, paid monthly: 75 basis point increase to 1.90% p.a.
  • 7 months, paid monthly: 230 basis point increase to 2.40% p.a.
  • 12 months, paid monthly: 25 basis point increase to 2.65% p.a. 

Newcastle Permanent term deposit rates increase 125 basis points

The building society has increased rates across a number of deposits requiring a minimum deposit of $1,000 ranging from three to sixty months. 

Key increases include:

  • 12 months, paid monthly: 125 basis point increase to 2.15% p.a.
  • 2 years, paid annually: 125 basis point increase to 2.30% p.a.
  • 4 years, paid annually: 105 basis point increase to 2.30% p.a.

Judo Bank term deposit rates increase 45 basis points

Judo Bank has increased rates for one year deposits requiring a minimum deposit of $1,000.

  • 1 year, paid monthly: 45 basis point increase to 3.05% p.a.
  • 1 year, paid annually: 45 basis point increase to 3.15% p.a.
  • 1 year, paid end-of-term: 45 basis point increase to 3.15% p.a.

Suncorp Bank term deposit rates increase 30 basis points

Suncorp Bank has increased rates for one year deposits requiring a minimum deposit of $5,000.

  • 1 year, paid monthly: 30 basis point increase to 2.25% p.a.
  • 1 year paid annually: 30 basis point increase to 2.30% p.a.

Great Southern Bank term deposit rates increase 80 basis points

Great Southern Bank has increased rates for a number of term deposits requiring a minimum deposit of $5,000.

  • 1 year, paid end-of-term: 80 basis point increase to 2.80% p.a.
  • 3 years, paid end-of-term: 50 basis point increase to 3.30% p.a.
  • 1 year, paid monthly: 80 basis point increase to 2.70% p.a.
  • 3 years, paid monthly: 50 basis point increase to 3.20% p.a.

People's Choice term deposit rates increase 135 basis points

The mutual bank increased rates for a number of term deposits requiring a minimum deposit of $5,000.

  • 1 year, paid annually: 135 basis point increase to 2.35% p.a.
  • 2 year, paid annually: 130 basis point increase to 2.50% p.a.
  • 3 years, paid annually: 130 basis point increase to 2.70% p.a.
  • 4 years, paid annually: 125 basis point increase to 2.70% p.a.

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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. 

Lender

At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details

Term Deposit - 6 months

    Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

    Personal Term Deposit - 6 months (Annually)

      At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details

      Term Deposit - 6 months ($10k-$250k)

        Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

        Edvest Term Deposit I20 ($1000-$499999) - 6 months

          Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

          Term Deposit I10 ($1000-$499999) - 6 months

            Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]250000$product[$field["value"]]$product[$field["value"]]More details

            Term Deposit ($250k+) - 6 Months

              Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

              Term Deposit (> $1000) - 6 months

                Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details
                FLEXIBLE INTEREST AND REPAYMENT TERMS
                • Interest can be paid to other institution
                • Automatic maturity rollover
                • Early Withdrawal Available
                FLEXIBLE INTEREST AND REPAYMENT TERMS

                Term Deposit (<$1m) - 6 months

                • Interest can be paid to other institution
                • Automatic maturity rollover
                • Early Withdrawal Available

                Rates based on a $50,000 deposit for 6 months. Rates correct as of June 29, 2022. View disclaimer.


                Image by Pixabay via Pexels

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                Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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