NAB is the last of the big banks to lift its best term deposit rate over the 4% benchmark.
The big four began lifting their rates early last month, in a sign banks were starting to lay the groundwork for possible interest rate increases in the near term.
NAB joins CommBank and Westpac in offering a rate of 4.10% p.a. for 12 months.
The big two's rates are 'special offer' deals for new or renewing customers, with Westpac's applying to those who renew online only.
But 4.10% p.a. is well below the best rate of both ANZ and Macquarie at 4.25% p.a.
ANZ is offering the rate on an eight-month investment for amounts between $5,000 and $2 million while Macquarie is paying 4.25% p.a. on six-, nine-, and 12-month deposits under $1 million paid end of term.
NAB term deposit rates
Here's a look at NAB's new term deposit rates for amounts between $5,000 and $1,999,999:
| Term | New rate (% change) | Interest paid |
| 3-4 months | 3.00% p.a. (+0.25) | End of term |
| 4-5 months | 3.00% p.a. (+0.10) | End of term |
| 5-6 months | 3.00% p.a. (+0.10) | End of term |
| 6-7 months | 3.15% p.a. (+0.15) | End of term |
| 7-8 months | 3.20% p.a. (+0.10) | End of term |
| 8-9 months | 3.20% p.a. (+0.10) | End of term |
| 9-10 months | 3.30% p.a. (+0.15) | End of term |
| 10-11 months | 3.35% p.a. (+0.10) | End of term |
| 1 year | 4.10 p.a. (+0.10) | Annually |
| 1 year | 4.05% p.a. (+0.10) | Semi-annually |
| 1 year | 4.05% p.a. (+0.10) | Quarterly |
| 1 year | 4.00% p.a. (+0.05) | Monthly |
The new rates are also well below the top rate of 4.45% p.a. currently being offered on 12-month deposits by two smaller players Judo Bank and Heartland Bank, according to the Savings.com.au database.
Term deposit rates move higher
Term deposit rates have been trending upwards since early November as market expectations of further interest rate cuts were doused by signals that inflation is again on the rise.
With many analysts now forecasting the next move to the cash rate will be higher, deposit-takers are lifting their term deposit rates in a bid to attract a stable funding source for a possible rise in demand for fixed-rate home loans in the near future.
Many banks had also likely priced in expectations of further rate cuts to their term deposit products and are now lifting them accordingly.
The Reserve Bank cash rate, the benchmark for setting interest rates in the Australian economy, remains on hold at 3.60% until at least February 2026.
The next RBA monetary policy board meeting is scheduled for 2-3 February, a week after key quarterly inflation data is released on 28 January.
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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 | – | – |
