- A new market-high rate of 5.35% p.a. has hit the term deposit market on Tuesday
- Judo Bank is currently setting the pace for the market's highest deposit rates, including its new savings account product
- Interest rates in both markets are on the move amid the current cash rate upcycle
Market-high term deposit rates are becoming par for the course in the current interest rate upcycle, perhaps prompting Judo Bank to mark itself as the pace-setter.
The microbank's 5.35% p.a. for a one-year term deposit of $1,000 to $2 million is 0.10% clear of the market's next highest rate - both newly announced on Tuesday.
Judo's rate eclipses Bank First's one-year deposit rate of 5.25% p.a. for amounts over $500.
Both rates leapfrog the previous market-high of 5.20% which Judo held along with two other smaller players.
See also : Competitive one-year term deposit rates
Judo matches savings rate
5.35% p.a. is the same rate Judo is currently offering on its new savings account product which comes with a $300 per month deposit condition.
The savings rate applies to balances up to $250,000 and comes with no withdrawal limits, meaning savers are free to take their cash out again each month and still qualify for the top interest rate.
Judo is currently leading the field in both savings and term deposit rates although both markets are on the move after last week's cash rate increase, with forecasts of further rate hikes in 2026.
Interest rates may still have some way to go
At this stage, all four big banks predict another 25-basis point jump to the cash rate in May with markets also pricing in a 67% chance of a May increase.
Some economists are now forecasting another two rate rises in 2026.
But this looks likely to hinge on global geopolitics, with oil prices looming as a key factor in upcoming economic decision making.
All eyes will be on how the conflict in the Middle East plays out.
In the meantime, those holding cash may be able to take advantage of ongoing market uncertainty.
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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 | – | – |
