- Term deposit rates continue to rise amid the Reserve Bank increasing the cash rate this week
- A few smaller banks are offering the market's current top rate of 5.20% p.a.
- Four bigger banks were also among those increasing their term deposit rates this week
It wasn't too long ago we were celebrating the handful of bold term deposit rates with a '5' in front.
But what started as a trickle has turned into a steady stream, powered by the Reserve Bank of Australia's second consecutive hike to the official cash rate on Tuesday.
Markets had largely priced in the hike but expectations had cooled slightly in the lead up to the announcement, driven by uncertainty surrounding the war in the Middle East and its ongoing effect on fuel prices.
It seems some members of the RBA's monetary policy board had their doubts too with a 5-4 split vote in favour of a cash rate increase.
Reserve Bank governor Michele Bullock was quick to point out those voting against were more concerned about the timing of the hike than the direction of it.
Delivering a cash rate increase in tandem with a fuel price surge will hit some households hard but with inflation tipped to reach 5% as a result of the war, it appears the RBA board opted to act earlier rather than wait until its May meeting.
While inflation is no one's friend, those holding cash may be happy that higher interest rates are back in play after 2025's brief downcycle.
Let's check what's happening on the buoyant term deposit market this week.
Big bank term deposit rates with a '5' in front
Four bigger banks upped at least some of their term deposit offerings this week - two of them introducing rates with a '5' in front.
NAB lifted its one- to two-year rates on Friday, offering 5.00% p.a. on a two-year deposit of $5,000 to under $2 million with interest paid annually.
Here's a look at some of NAB's new term deposit rates:
Term | Rate (% change) | Balance amount | Interest paid |
1 year | 4.80% p.a. (+0.10) | $5,000 - under $2m | Annually |
13-23 months | 4.80% p.a. (+0.10) | $5,000 - under $2m | Annually |
2 years | 5.00% p.a. (+0.30) | $5,000 - under $2m | Annually |
The rates drop for more frequent payments as follows:
- 0.05% less than the annual rate for semi-annual payments
- 0.10% less than the annual rate for quarterly and monthly payments
Other big bank rates changes without a '4' in front
Westpac also increased a raft of its term deposit rates by up to 0.40% on Friday afternoon although none of its new rates cracked the 4% benchmark so aren't worth too much column space.
Other banks in the Westpac stable - St George, Bank of Melbourne, BankSA - also lifted some term deposit rates by up to 0.70% but, likewise, none breached 4%.
See all big 4's term deposit rates here: Big 4 Term Deposit Rates
Let's move on.
Macquarie gets in first with a big bank '5'
Conversely, serial big four disruptor Macquarie Bank was the first of the bigger banks to announce a term deposit rate with a '5' in front in the current upcycle.
It's offering 5.00% p.a. for a one-year deposit of amounts between $5,000 and $1 million with interest paid end of term.
Macquarie has been consistently pushing its rates higher over recent weeks to mark its gap over the rate offerings of the big four.
The country's two largest banks Commonwealth Bank and Westpac also adjusted their special offer rates this week, but both fall considerably short.
Let's check the big five's best term deposit rates (for lower deposit amounts) as at 20 March 2026:
Bank | Best rate | Term | Balance amount | Interest paid |
CommBank | 4.80% p.a. (special offer) | 12 months | $5,000 - $5m | Annually |
Westpac | 4.80% p.a. (special offer - online only) | 24 months | $5,000 - $2m | Monthly or end of term |
NAB | 5.00% p.a. | 2 years | $5,000 - under $2m | Annually |
ANZ | 4.80% p.a. (featured rate) | 12 months | $5,000 - under $2m | At maturity |
Macquarie Bank | 5.00% p.a. | 1 year | $5,000 - $1m | End of term |
It's worth noting CommBank also lifted its two-year rates this week, offering 4.85% p.a. for 24-33 month terms for deposits between $50,000 and $5 million with interest paid annually.
The 5.20% club
Where once the 5% Club set the pace, the 5.20% Club is now the place to be.
It's populated by smaller banks looking to nab their share of the deposit market with eye-catching rates.
Let's check the membership as of 20 March 2026:
Bank | Rate | Term | Balance amount | Interest paid |
AMP GO | 5.20% p.a. | 12 months | $5,000 - $10m | End of term |
5.20% p.a. | 5 years | $1,000 - $2m | Annually | |
Great Southern Bank (over 55s rate only) | 5.20% p.a. | 1 year | over $5,000 | End of term |
All three institutions lifted their rates this week.
AMP GO is AMP's online-only bank launched in July 2025 which offers just two highly competitive term deposit products for six- and 12-month terms.
The 5.15% Club
Also not to be sneezed at is the small but newly formed 5.15% gang.
Customer-owned Community First Bank joined on Friday with its Term Deposit special offer of 5.15% p.a. for amounts of between $10,000 and up to $1 million invested for 12 months.
Interest is paid at maturity and the offer will be available until 31 May, or until allocation is reached.
AMP Bank is also offering a 5.15% p.a. 12-month rate for those with higher deposit amounts ($25,000 - $10 million) with interest paid end of term.
New 5.10% term deposit 12-month deals
Amid the wave of term deposit market rate movements this week, here are some other notable new offers this week:
Bank | Rate | Term | Balance amount | Interest paid |
Gateway Bank | 5.10% p.a. | 12 months | $1,000 - $500,001 | End of term |
AMP Bank | 5.10% p.a. | 12 months | $5,000 - under $250,000 | End of term |
Bank Australia | 5.10% p.a. | 12 months | $500 - $3m | End of term |
Qudos Bank | 5.10% p.a. | 12 months | $5,000 - $1m | End of term |
Great Southern Bank | 5.10% p.a. | 12 months | $5,000 minimum | At maturity |
Rabobank has also been offering 5.10% p.a. for a five-year deposit on amounts $500,001 to $2 million, with interest paid annually since 2 March.
New 5.05% p.a. 12-month rates
Bank First launched a 5.05% p.a. one-year rate this week for deposits over $500 with interest paid end of term.
The customer-owned bank is also offering 4.95% p.a. on its 1-year Regular Income product for deposit amounts over $5,000 with fortnightly interest payments.
Meantime, Heartland Bank nudged its 12-month rate higher this week to 5.05% p.a. for amounts over $10,000 to $1 million with interest paid annually.
Other term deposit rate movers
There were more than a dozen other institutions upping their term deposit rates on the market this week.
Here's a quick run-through of the more notable rates:
- The Mutual Bank is offering 5.00% p.a. for a 12-month deposit of between $1,000 and under $500,000 with interest paid end of term
- Partner brands Teachers Mutual Bank and UniBank announced a 4.80% p.a. 12-month rate for Edvest members aged over 50 which includes a 0.05% bonus on the standard rate of 4.75% p.a. for other members
- Summerland Bank is offering a new special offer rate of 4.80% p.a. for a 12-month deposit of amounts between $100,000 and under $1 million
- BCU Bank also has a new top rate of 4.80% p.a. for a 12-month deposit of amounts between $1,000 and under $1 million, with 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 | – | – |
