ME Bank announced it will be passing on a 25 basis point increase to one year term deposit products, pushing the highest available rate to 5% p.a.

This is the first time an Australian bank has offered an unconditional and ongoing 5% rate during this high rate period, and ME overtakes Judo, the previous market leaders which moved to 4.90% p.a last week.

Transport Mutual Credit Union has a special offer of a 5% p.a rate on one year products for new deposits, but savers will need to fill out an application form via email to be considered.

It's also offered only for new customers to the mutual bank.

Given current expectations that the cash rate is set for further increases, it's likely the coming weeks will see more providers with term deposit rates starting with a 5.

Current highest one year term deposit rates in Australia

Deposit size Interest rate
ME $5,000-$2,000,000 5.00% p.a
Transport Mutual $1,000-$99,999,999 5.00% p.a*
Judo $1,000-$999,999 4.90% p.a
Firstmac/Goldfields Money $5,000-$5,000,000 4.85% p.a
AMP $25,000-$5,000,000 4.80% p.a

*Special offer for new customers, external accounts only

ME rate changes

Rates are slightly lower for ME customers who choose to receive interest payments monthly rather than annually or at the term conclusion.

No establishment or account keeping fees apply to ME's range of term deposit products

Term length Deposit size Payment frequency Interest rate (Percentage point increase)
One year-18 months $5,000-$2,000,000 End of term 5.00% p.a (+0.25)
One year-18 months $5,000-$2,000,000 Annually 5.00% p.a (+0.25)
One year-18 months $5,000-$2,000,000 Monthly 4.95% p.a (+0.25)

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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.

Rates
Features
Conditions
Other
Provider
At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • Easy online application
  • Interest can be paid to other institutions
  • Maturity alert by email and phone

Term Deposit - 6 months

  • Easy online application
  • Interest can be paid to other institutions
  • Maturity alert by email and phone
More details
Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

Term Deposit ($1000-$500001) - 6 months

    More details
    At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details
    • Deposits are protected up to a limit of $250,000 for each account
    • Added loyalty bonus of 0.10%

    Personal Term Deposit - 6 months

    • Deposits are protected up to a limit of $250,000 for each account
    • Added loyalty bonus of 0.10%
    More details
    Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

    Term Deposit (<$1m) - 6 months

      More details
      At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10008$product[$field["value"]]$product[$field["value"]]More details

      Online Term Deposit - 6 months

        More details
        • Easy online application
        • Interest can be paid to other institutions
        • Maturity alert by email and phone

        More details
        Important Information and Comparison Rate Warning

        All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of December 10, 2023. View disclaimer.

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