NAB, Macquarie lead term deposit rates lower

It's no secret interest rates are heading lower, particularly after this week's inflation data showed underlying inflation has dipped to within the Reserve Bank of Australia's target range for the first time in more than three years.

That's good news for the economy, although depositors will no doubt miss the days when their cash earned 5%-plus interest without them having to think too much about it.

But those times are over with 4.80% p.a. the best rate currently offered on the term deposit market for a six-month deposit, according to the Savings.com.au database.

Longer term rates are decidedly lower in a sign where the market sees rates heading for the foreseeable future.

This week, more than a dozen authorised deposit-taking institutions (ADIs) were busy dropping term deposit rates, including a couple of the big guns, namely NAB and Macquarie Bank.

NAB offers only one rate above 4%

National Australia Bank's best rate is now 4.20% p.a. for amounts between $5,000 and under $2 million, deposited for seven months.

It's a five basis point drop on the old rate but other rates have taken bigger hits - up to 20 basis points.

Here are the new rates for amounts between $5,000 and under $2 million:

Term	New rate (% change)	Interest paid
3 months	2.90% p.a. (-0.10)	End of term
6 months	3.20% p.a. (-0.10)	End of term
7 months	4.20% p.a. (-0.05)	End of term
8 months	3.40% p.a. (-0.10)	End of term
9 months	3.40% p.a. (-0.10)	End of term
10 months	3.50% p.a. (-0.10)	End of term
11 months	3.50% p.a. (-0.10)	End of term
1 year	3.90% p.a. (-0.10)	Annually
13-23 months	3.80% p.a. (-0.20)	Annually

For terms 1 year and over, interest rates drop by 0.05% for more frequent payments: half-yearly, quarterly, or monthly.

Macquarie tweaks 3-month rates

The team at Macquarie has shaved five basis points off its three month rates, as follows:

Term	New rate (% change)	Amount deposited	Interest paid
3 months	4.30% p.a. (-0.05)	$5,000-$1m	End of term
3 months	4.10% p.a. (-0.05)	$1,000,001-under $10m	End of term

Gateway trims market-leading rate

The customer-owned bank has taken five basis points off its top rate, dropping it to 4.80% p.a., but still claiming the market's best six-month rate along with Heartland Bank and G&C Mutual Bank. (See below on Judo Bank's exit.)

Here are the Gateway Bank's latest rate movements for amounts $1,000 or more:

Term	New rate (% change)	Interest paid
3 months	4.75% p.a. (-0.05)	End of term
6 months	4.80% p.a. (-0.05)	End of term
9 months	4.60% p.a. (-0.15)	End of term
12 months	4.455 p.a. (-0.15)	End of term

Judo bows out of rates leaderboard

As foreshadowed, Judo Bank has relinquished the top six-month market ranking to its previous small bank stablemates.

Judo's taken 20 basis points off, with its new rate 4.60% p.a. for amounts between $1,000-$2m, with interest paid end of term.

The challenger bank's new top rate is 4.70% p.a. for three months, a five basis point slice off the old rate.

Here are Judo's new personal term deposit rates for amounts between $1,000-$2m:

Term	New rate (% change)	Interest paid
3 months	4.70% p.a. (-0.05)	End of term
6 months	4.60% p.a. (-0.20)	End of term
9 months	4.45% p.a. (-0.20)	End of term
1 year	4.30% p.a. (-0.20)	End of term
2 years	4.20% p.a. (-0.10)	Annually

Rates for monthly payments drop by 10 basis points.

Judo has also dropped its business and SMSF term deposit rates this week.

Newcastle/Greater Bank go big on rate cuts

There was no mucking around for the merged Newcastle Permanent and Greater Bank brands, with the two slashing 50 basis points from their two-, four-, and five-year rates.

The group's best new term deposit rate is 4.35% p.a. for six months for amounts $1,000 and over, with interest paid end of term.

That's a hefty 30 basis points off the old rate with only the six-month and 12-month rates now sporting a '4' in front.

RACQ Bank chops up to 60bp

The Queensland-based bank had been amongst the leading pack with its three-month rate which has now seen a 35-basis point cut to 4.50% p.a.

It's part of a suite of cuts which also take in its longer-term two- to five-year rates - now uniformly at 3.30% p.a. with the two-year rate copping a 60 basis point drop.

RACQ Bank's new best rate is 4.55% p.a. for six months for amounts over $1,000 with interest paid end of term. 

IMB Bank rare rate booster

IMB Bank gets its own headline for boosting its three-month rate by 15 basis points to 4.35% p.a. for amounts $5,000 and over.

But it comes at the same time as a 25-basis point cut to its both its six- and 12-month rates, now 4.25% p.a. and 4.00% p.a. respectively.

Other term deposit rate cutters

• Beyond Bank has cut up to 25 basis points off its term deposit rates with a new best rate of 4.40% p.a. for amounts over $50,000 deposited for three months
• Australian Military Bank has stood down rates by up to 50 basis points on its Investment Plus, Income Plus, and Teen Plus products for terms under 15 months
• MyState Bank has pulled back the rates on a range of its online, regular, and income term deposit products by up to 30 basis points
• Horizon Bank has dropped its term three-, six-, nine-, and 12-month term deposit rates by up to 20 basis points
• Arab Bank Australia has taken 20 basis points off its nine-month and one-year term deposit rates
• First Option Bank has slashed up to 40 basis points off its three-, six-, nine-, and 12-month term deposit rates.

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