Macquarie tweaks term deposit rates amid 'wait and see' market
- Macquarie Bank has lifted its nine-month term deposit rate by five basis points to 5.15% p.a.
- Its top rate of 5.25% p.a. for 12 months remains unchanged despite being matched by ANZ last week
- The term deposit market has calmed in recent weeks in the lead up to another possible cash rate hike in May
Macquarie Bank announced a five-basis point increase to its nine-month term deposit rates on Wednesday, lifting them to:
- 5.15% p.a. (balances $5,000 - $1 million)
- 5.05% p.a. (balances over $1 million)
Both rates apply to end-of-term interest payments.
Macquarie's top rate of 5.25% p.a. for a 12-month deposit remains unchanged despite being matched on Friday by big bank rival ANZ.
Macquarie, Australia's 'fifth' big bank, typically keeps its best term deposit offerings comfortably above the big four's.
ANZ goes big
ANZ had been the slowest of the big banks to lift its term deposit rates in the wake of the March increase to the Reserve Bank cash rate.
But on Friday, it made the bold move of increasing its 12-month rate by 25 basis points to equal Macquarie's best offering.
It also lifted a range of its shorter-term Advance Notice term deposit rates at the same time.
ANZ's top offering has also leapfrogged its big three counterparts, including those with 'special offer' 12-month deals.
Here's the big five's top term deposit rates as they stand:
| Bank | Top rate | Term | Deposit amount | Interest paid |
| CommBank | 5.10% p.a. special offer | 12 months | $5,000-$5m | Annually |
| Westpac | 5.20% p.a. special offer (online only) | 24 months | $5,000-$2m | Monthly or at maturity |
| NAB | 5.10% p.a. | 12 months | $5,000-$1,999,999 | At maturity |
| ANZ | 5.25% p.a. | 12 months | $5,000-$1,999,999 | At maturity |
| Macquarie Bank | 5.25% p.a. | 12 months | $5,000-$1m | At maturity |
See also : Big four term deposit rates
Over to Macquarie?
It's a fair bet Macquarie Bank's rate setters may be considering another tweak to term deposit rates, if only to reclaim the challenger bank's customary position ahead of the big four pack.
The term deposit market has calmed somewhat in recent weeks after a flurry of rate rises sparked by the February and March cash rate hikes.
Many banks are likely marking time before the May meeting of the Reserve Bank's monetary policy board.
Markets are currently pricing in a 72% chance of a Reserve Bank cash rate increase on 5 May, taking the rate to 4.35%.
A third rate hike for 2026 will trigger another round of interest rate increases with some economists predicting it may also give rise to stagflationary pressures brought on through flow-on effects of increased fuel prices.
Stagflation is characterised by slow economic growth, higher unemployment, and high inflation - a position that no central bank wants to court.
Winners and losers
But for those holding cash, another cash rate hike is likely to bring on some attractive deposit rates.
The top 12-month rate on Savings.com.au's radar is 5.45% p.a. offered by a number of smaller deposit-takers, including Heartland Bank and MOVE Bank.
The highest rate overall is Rabobank's 5.70% p.a. for a five-year deposit of amounts between $500,000.01 and $2 million with interest paid annually.
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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 | – | – |
