- Macquarie Bank has lifted its top term deposit rate to 4.50% p.a.
- It applies to one-year deposits between $5,000 and $1 million with interest paid end of term.
- It's the fourth time Macquarie has adjusted its term deposit rates higher since November.
Macquarie's new one-year rate of 4.50% p.a. applies to balances of $5,000 to $1 million with interest paid end of term.
It's a 0.10% jump on the previous rate - the same increase applies to the new rate of 4.25% p.a. for deposits over $1 million with interest paid annually.
| Term | New rate (% change) | Amount deposited | Interest paid |
| 1 year | 4.50% (+0.10) | $5,000-$1m | End of term |
| 1 year | 4.25% p.a. (+0.10) | over $1m | Annually |
The changes mark the fourth time Macquarie has lifted its term deposit rates since November and follow increases to its shorter-term rates last week.
The move also sees Australia's 'fifth big bank' continue to push its rate offerings above those of its big four peers in the term deposit market.
Below are the big five's best rates as they stand:
| Bank | Top term deposit rate | Term | Amount deposited | Interest paid |
| CommBank | 4.25% p.a. | 12 months | $5,000-$5m | End of term |
| Westpac | 4.10% p.a. (online rate only) | 12 months | $5,000-$2m | End of term |
| NAB | 4.25% p.a. | 12 months | $5,000-under $2m | End of term |
| ANZ | 4.25% p.a. | 8 months | $5,000-under $2m | At maturity |
| Macquarie Bank | 4.50% p.a. | 1 year | $5,000-$1m | At maturity |
Why are term deposit rates increasing?
Term deposit rates have been lifting for the past few months in response to growing expectations of a Reserve Bank cash rate hike in 2026.
The latest quarterly inflation data, released on Wednesday, will add fuel to the fire, with the annual figure of 3.8% - up from the previous month's 3.4% - coming in above market expectations.
However, the RBA's preferred inflation measure, the trimmed mean, recorded a more modest rise to 3.3%, up from 3.2%.
This may - or may not - give the monetary policy board some pause in hiking the cash rate at its first meeting of the year next week.
Prior to the release of Wednesday's key CPI data, two of the big banks - CommBank and NAB - expected the RBA to lift the cash rate by 0.25% to 3.85% in February.
Regardless, banks have been positioning themselves to compete in a rising interest rate environment for some time - lifting term deposit rates and cushioning themselves by also lifting fixed-term home loan interest rates.
What are the market's highest term deposit rates?
According to the Savings.com.au data base, Australian Military Bank continues to offer the market's top rate of 4.70% p.a. for nine and 10-11 month terms for deposits of $1,000 or more.
It equals Rabobank's top rate of 4.70% p.a. for a five-year deposit of balances over $500,000 to $2 million with interest paid annually.
The latest economic data may well see more deposit-takers revise their interest rates this week.
The Reserve Bank will deliver its next verdict on the cash rate on Tuesday 3 February.
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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 | – | – |
