New market-leading term deposit rate unveiled after RBA hike
- AMB Bank GO now offers a market-leading 5.70% p.a. rate on its 12-month term deposit
- The bank's six-month term deposit rate has also increased to 5.40% p.a.
- The move comes a day after the RBA lifted the cash rate to 4.85%
AMP Bank GO's new 5.70% p.a. rate is now the highest advertised offer available on a standard 12-month term deposit, according to Savings.com.au's database.
The new offer overtakes the previous market leaders, with Bank Australia, Qudos Bank, and Community First Bank each offering 5.60% p.a. on a 12-month term deposit.
It also edges above rival challenger bank Judo's 5.65% p.a. top offer for depositors locking away their savings, albeit for a shorter 10-month term.
AMP has also lifted its six-month term deposit rate to 5.40% p.a., just below Gateway Bank's market-leading 5.45% p.a. offer for the same term.
Here are the latest AMP Bank GO term deposit rates:
Term | New rate | Deposit size | Interest paid |
12 months | 5.70% p.a. | $5,000 - $10m | End of term |
6 months | 5.40% p.a. | $5,000 - $10m | End of term |
For a customer investing $5,000, a 5.70% p.a. return would generate approximately $285 in interest over 12 months before tax.
Meanwhile, a $5,000 deposit into a six-month TD paying 5.40% p.a. would earn around $135 in interest before tax by the end of the term.
RBA November hike sparks fresh competition for savers
AMP Bank's latest move is the latest in heightened competition for deposits among banks seeking to attract savers looking to secure guaranteed returns amid the current high interest rate environment.
The Reserve Bank on Tuesday lifted the cash rate by another 25 basis points to 4.85%, taking Australia's official interest rate to its highest level in 18 years.
The cash rate was increased for the fifth time in 2026 in a split 6-3 vote.
The latest cash rate hike means variable-rate mortgage holders will be looking at higher home loan repayments in the coming weeks.
Banks likewise respond to higher cash rates by adjusting savings products, though changes are often passed through at different speeds.
See which banks are lifting rates after the November rate rise
By comparison, the highest savings account rates continue to sit above most term deposit offers, with some accounts still paying more than 6% p.a. for eligible customers.
Is this the last chance to secure a high term deposit rate?
For savers deferring locking away their savings hoping term deposit rates will climb even higher, the outlook for official interest rates has become increasingly uncertain following the RBA's latest decision.
Notably, the Melbourne Cup Day rate hike was accompanied by a more measured message from the RBA.
While policymakers acknowledged inflation remains above target and is expected to stay above 3% for much of 2027, the Board stopped short of signalling further rate hikes are likely.
See also: RBA Governor Michele Bullock hints at cash rate breather
The RBA removed its previous reference to potentially "needing to raise the cash rate further" from the November post-meeting statement.
Instead, the RBA reiterated that future decisions will depend on incoming data, particularly around inflation, wages growth, household spending, and the labour market.
This has fuelled speculation that the November increase could be the final move of the current tightening cycle.
Several major bank economists now expect the cash rate to remain at 4.85% for an extended period.
The previously hawkish ANZ changed tone and is no longer forecasting another interest rate increase.
CBA, NAB, and Westpac are not pricing in another rate hike in December, but expect the RBA to remain sensitive to any upside surprises.
Others have not ruled out another increase altogether, but agree the bar for additional tightening is considerably higher than it was earlier in the cycle.
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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 | $1,000 | $1,000,000 | – | – | |||||||||||||
5.25% p.a. | At Maturity | 6 months | $5,000 | $19,999 | – | – | |||||||||||||
5.20% p.a. | At Maturity | 6 months | $10,000 | $5,000,000 | – | – |
