Following Commbank's example, NAB is now back offering a top TD rate that begins with a 4.
For now all rates at Westpac and ANZ are still below 4%, but with rates trending upwards in light of growing uncertainty about future RBA cuts it might not be long until they follow suit.
Meanwhile Judo Bank has significantly hiked its eight month rate, up 20 bps to 4.40% p.a. which is the highest rate in the Savings.com.au database.
Australian Military Bank also now offer a top rate of 4.40% p.a., for six month terms.
NAB new term deposit rates
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
|---|---|---|---|
| Seven/eight months | $5,000+ | End of term | 3.10% p.a. (-0.70) |
| One year | $5,000+ | Annually | 4.00% p.a. (+0.30) |
| One year | $5,000+ | Monthly | 3.95% p.a. (+0.30) |
The highest term deposit rate at both NAB and Commonwealth Bank is now 4% p.a. for one year terms.
At CBA that rate is on its special offer product, available for a limited time to existing retail customers only, with interest paid at the end of term.
That means for monthly interest payments, NAB has the stronger rate at 3.95% p.a. - CommBank's top one year return with monthly interest is 3.60% p.a..
Judo Bank hikes term deposit rates
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
|---|---|---|---|
| Eight months | $1,000-$2,000,000 | End of term | 4.40% p.a. (+0.20) |
| Eight months | $1,000-$2,000,000 | Monthly | 4.30% p.a. (+0.20) |
The major banks tend to offer modest TD rates compared to some of the smaller providers.
For the past couple of years, Judo Bank has been one of the market frontrunners, with Monday's hike to eight month rates returning the neobank to the summit of the Savings.com.au database.
Here's how much you could earn if you opened a Judo term deposit right now, for various deposit sizes (interest earnings are subject to income tax):
| Deposit Size | After eight months you would earn... |
|---|---|
| $1,000 | $29.33 |
| $10,000 | $293.3 |
| $100,000 | $2,933 |
| $1,000,000 | $29,330 |
Unlike savings account interest which compounds, term deposits typically pay simple interest.
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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 | – | – |
