- Term deposit rates continue to climb across the market.
- This week's rises coincide with firming odds of a Reserve Bank cash rate cut to dampen hotter-than-expected inflation.
- Macquarie Bank again lifted its highest term deposit offering - now 4.50% p.a. for 12 months.
Term deposit rates have been lifting across the market since November as late-year CPI prints suggested inflation was indeed back in play in the Australian economy.
Those who doubted its tenacity have now changed their tune after the release of key quarterly CPI data on Wednesday.
Inflation came in at 3.8% during 2025, up from the previous month's figure of 3.4% and well above the market expectation of 3.6%.
Markets finished the day pricing in a 72% chance of a cash rate rise from the Reserve Bank's first monetary policy meeting of the year next week.
But deposit-takers have been preparing the ground for a cash rate hike for months, lifting their term deposit rates to compete in a rising interest rate environment.
Macquarie hikes again
On the back of raising its short-term (12 months and under) rates by 0.05% the previous week, Macquarie Bank further sweetened its one-year rates by another 0.10% this week.
Macquarie's best rate is now 4.50% p.a. for a one-year deposit of between $5,000 and $1 million with interest paid end of term.
The rate for one-year deposits over $1 million also got a 0.10% hike to 4.25% p.a.
Macquarie now outstrips the top term deposit rates of three of the big four banks by 0.25%.
It's 0.40% ahead of Westpac's best rate of 4.10% p.a. (online only) for 12-month deposits between $5,000 and $2 million.
Gateway goes higher
Term deposit market watchers will be no stranger to Gateway Bank, known for its competitive rates, which gave its 12-month rate another nudge to 4.55% p.a. this week.
It's the third 0.05% lift to the 12-month rate over the past two weeks.
Gateway accepts minimum term deposits of $1,000 and will pay interest either monthly, six-monthly, or at maturity.
Newcastle banks lift 6, 12-month rates
Affiliates Newcastle Permanent and Greater Bank increased their six and 12-month rates by up to 0.15% this week.
Newcastle Permanent's new best rate is 4.35% p.a. for amounts between $1,000 and $1 million deposited for 12 months with interest paid end of term.
The rate drops to 4.25% p.a. for more frequent interest payments.
The rate for a six-month deposit is 4.30% p.a. with interest paid on maturity and 4.20% p.a. for monthly payments.
Greater Bank matches the top offerings but requires a minimum deposit of $5,000 with the option of interest paid end of term or monthly only.
Other rate movers
- Bank of Sydney has jacked up its three-month rate by 0.30% to 4.15% p.a. for deposit amounts between $1,000 and $1 million, interest paid end of term
- Northern Inland Credit Union has adjusted its term deposit rates across the board by up to 0.15% - some higher, some lower. Its best new rate is 3.90% p.a. for 12 months, interest paid end of term
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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 | – | – |
