- Bank Australia and Qudos Bank have announced a new market-high 12-month term deposit rate of 5.10% p.a.
- It equals the term deposit market's highest rate which had previously been offered on a five-year deposit
- The announcement comes just hours before the Reserve Bank of Australia's decision on the cash rate on Tuesday
Merger partners Bank Australia and Qudos Bank launched their new market-high 5.10% p.a. rate on Tuesday morning.
Both are offering the rate on a 12-month deposit.
Bank Australia is accepting deposit amounts between $500 and $3 million while Qudos Bank will pay the rate on deposit amounts of between $5,000 and $1 million.
Qudos Bank is paying 5.10% p.a. whether depositors choose end-of-term interest or monthly interest payments.
Bank Australia is dropping the rate to 5.00% p.a. for those choosing monthly interest.
Market on the move
The term deposit market has been shifting rapidly over recent weeks as odds of another rise to the cash rate firmed.
The new 5.10% rate tops the previous 12-month market high of 5.05% p.a. offered by smaller players Great South Bank on its 55+ Platinum Plus product and MOVE Bank, both paying end-of-term interest.
All four banks had lifted their rates just last week when Bank Australia and Qudos raised their 12-month rate by 20 basis points to 5.00% p.a.
The extra 0.10% hike on Tuesday comes hours before the Reserve Bank of Australia is due to announce any change to the official cash rate.
Markets had expected the cash rate to rise 25 basis points to 4.10% p.a. in March although sentiment has cooled somewhat in the lead-up to the announcement.
Bank Australia and Qudos Bank now join Rabobank in offering the term deposit market's top interest rate of 5.10% p.a.
The Rabobank rate is for a five year deposit of amounts over $500,000 to $2 million with interest paid annually.
As of Tuesday, eight deposit takers are offering term deposit rates of 5.00% p.a. and above, according to the Savings.com.au database.
Advertisement
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 | – | – |
