- The term deposit market continues to see rates increase with NAB and Macquarie among this week's rate movers
- A new market-leading rate of 4.70% p.a. was announced this week for nine and 10-11 month deposits
- Term deposit rates will show little sign of slowing with odds firming for a 2026 cash rate increase on the back of the latest jobs data
Term deposit rates continue to lift on the ever-rising tide of sentiment that 2026 will bring a prolonged period of cash rate stability or the firming possibility of rate increases.
In any case, deposit-takers have been jostling to position themselves for several weeks, with three of the big four banks hiking their term deposit rates over the past six weeks and Macquarie Bank again getting in on the action this week.
See also : Big new term deposit rates from NAB
Here are the big five's best term deposit rates as they stand:
| Bank | Highest term deposit rate | Term | Amount | Interest paid |
| CommBank | 4.25% p.a. | 12 months | $5,000-$5m | End of term |
| Westpac | 4.10% p.a. (online rate only) | 12 months | $5,000-$2m | End of term |
| NAB | 4.25% p.a. | 12 months | $5,000-under $2m | End of term |
| ANZ | 4.25% p.a. | 8 months | $5,000-under $2m | At maturity |
| Macquarie Bank | 4.40% p.a. | 6, 9, or 12 months | $1m and under | At maturity |
CommBank also moved this week to lift the term deposit amount customers can deposit online from $1,999,999 to $5 million.
Big five outgunned by Military Bank
But a new market leader emerged from the ranks this week with Australian Military Bank announcing a new top term deposit rate of 4.70% p.a. for nine and 10-11 month terms for deposits of $1,000 or more.
That equals Rabobank 's top rate of 4.70% p.a. for a five-year deposit on amounts between $500,000.01 to $2 million.
Australian Military Bank's high-paying term deposit rates also apply to its Teen Plus products for those under 17 with deposits of $500 or more.
More term deposit rates above 4.5%
More banks consolidated their positions in the 4.50% p.a.-plus club this week, including:
- Judo Bank - new top rate of 4.55% p.a. for one year with interest paid annually (deposits between $1,000-$2m)
- Heartland Bank - new top rate of 4.55% p.a. for 12 months with interest paid at maturity (minimum deposit $10,000)
Gateway Bank also joined the club, increasing its 12-month rate by five basis points to 4.50% p.a. for deposits $1,000 or more, with interest paid end of term.
More rate movements incoming?
Odds of an increase to the cash rate firmed on Thursday with an unexpected fall in the unemployment rate to 4.1%.
Employment rebounded in December, with another 65,200 people finding work.
While that may sound like good news, the robust jobs market has reinforced concerns the economy is hitting its limited capacity for growth - constrained by low productivity and an expanded public sector.
The Reserve Bank may need to step in to dampen resulting inflationary pressures.
NAB economists noted the labour market now joins inflation and consumption in tracking stronger than the RBA's November forecasts.
NAB is sticking with its forecast the RBA will lift the cash rate by 0.25% to 3.85% at next month's monetary policy meeting, with another 0.25% increase in May.
CommBank economists are also expecting a February rate hike.
The likelihood of that will now hinge on next week's all-important quarterly inflation data, scheduled for release on 28 January.
Other rate movers this week
In the meantime, the tide of rising term deposit rates has little reason to slow.
Below are other rate movements this week:
- Great Southern Bank lifted a raft of term deposit rates by up to 25 basis points with a new top rate of 4.35% p.a. for seven months for amounts $5,000 and over
- Bank First increased its shorter-term term deposit rates by up to 15 basis points, hitting a new top rate of 4.40% p.a. for 270-day (nine-month) and one-year deposits for balances over $500, interest paid end of term
- Bank of Us has a new top rate of 4.30% p.a. for seven months for amounts between $5,000 to $500,000 with interest paid at maturity
- Community First Bank and partner brand Illawarra Credit Union have lifted six and 12-month deposit rates by 0.10%
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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 | – | – |
