It was six weeks ago CBA took the sword to its term deposit rates, slashing many by 25 basis points although some went much lower.
On Wednesday, the day after the Reserve Bank of Australia announced the cash rate would remain on hold, CBA has struck again, trimming another 10 basis points from many rates but raising some for 12-17-month terms.
It's also announced a special offer term deposit rate of 4.75% p.a. for amounts between $5,000 and $1,999,999 invested for nine months, with interest paid annually.
The ‘special offer’ is a five-basis point cut on the previous rate but is the bank’s highest advertised rate.
Here are some of the new rates for amounts between $5,000 and $49,999.99:
| Term | New rate (change %) | Interest paid |
|---|---|---|
| 3 months | 3.1% p.a. (-0.1) | End of term |
| 6 months | 3.35% p.a. (-0.1) | End of term |
| 9 months | 4.25% p.a. (-0.05) | End of term |
| 11 months | 3.85% p.a. (-0.1) | End of term |
| 12 months | 4.35% p.a. (+0.35) | Annually |
| 24-33 months | 3.7% p.a. (-0.1) | Annually |
| 34-35 months | 3.7% p.a. (+0.15) | Annually |
Amid the cuts, CBA has also lifted its 12-month and 12-17 month rates up to 40 basis points for amounts between $50,000 and $1,999,999.
However, those rates are still lower than those offered for nine-month terms.
Overall, CBA’s rates are considerably lower than the market's best with some deposit takers still offering rates above 5%.
According to the Savings.com.au term deposit database, the current highest rate is 5.10% p.a. being offered by three smaller deposit takers.
TD rates plunging across the market
Many of the major banks and other institutions have been moving their term deposit rates lower over the past two months.
In effect, it means many larger deposit takers are barely offering much more than the inflation rate, particularly on some of their shorter-term deposit rates.
It's being matched by a market-wide fall in fixed home loan rates as interest rates ease on global money markets.
It seems banks and other institutions are preparing themselves for a cut to the Australian cash rate at some time in the future.
CBA remains the outlier among the big four banks in forecasting a 2024 rate cut in December despite RBA governor Michele Bullock restating on Tuesday there would be no cut to the cash rate "in the near term".
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Want to earn a fixed interest rate on your cash? The table below features term deposits from the major banks.
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.25% p.a. | Annually | 12 months | $5,000 | $100,000 | – | – | |||||||||||||
5.15% p.a. | Annually | 12 months | $5,000 | $1,999,999 | – | – | |||||||||||||
4.75% p.a. | Annually | 12 months | $5,000 | $249,999 | – | – | |||||||||||||
4.75% p.a. | Annually | 12 months | $50,000 | $5,000,000 | – | – | |||||||||||||
5.10% p.a. | At Maturity | 6 months | $5,000 | $100,000 | – | – | |||||||||||||
3.50% p.a. | At Maturity | 6 months | $5,000 | $1,999,999 | – | – | |||||||||||||
3.50% p.a. | At Maturity | 6 months | $50,000 | $5,000,000 | – | – | |||||||||||||
3.40% p.a. | At Maturity | 6 months | $5,000 | $249,999 | – | – |
