In case you missed it, the RBA hiked the cash rate by 25 bps on Tuesday.
While most of the media coverage focuses on the added burden for mortgage holders, rates going up also means stronger returns on deposit products like savings accounts and term deposits.
The week past was a particular bonanza for term deposit returns, with several major banks hiking significantly to offer returns that would have been unthinkable just a few weeks ago.
There were also several new market leading rates from smaller banks, and with markets pricing in additional rate hikes to come in 2026, there's every chance returns will continue to climb in the coming weeks - perhaps cracking the 5% mark before too long.
Commonwealth Bank goes to 4.4%
Australia's biggest bank hiked TD rates on Monday for the second time in 2026, launching a new one year special rate of 4.35% p.a. while taking its two year return to 4.40% p.a.
That two year rate is the highest of any TD product among the big four banks, although Macquarie is still ahead at 4.50% p.a. for one year.
Read more: Commonwealth Bank term deposit rate hikes
Westpac group hike one year special rates
Westpac matched the Commbank hike, at least for the one year special rate, also launching a new 4.35% p.a. special offer - up 25 bps on its previous highest return.
The other banks in the Westpac group (St George, BankSA, and Bank of Melbourne) all also launched a new special offer one year rate. The subsidiaries are outshining their parent company with a top one year rate of 4.50% p.a. including a 10 bps online-only bonus.
AMP GO hits 4.65% for one year + market leading six month rate
AMP Go - AMP's digital offering - gave its two term deposit products (six months and one year) a boost just before the RBA hike.
Six month rates are now 4.50% p.a. after a 10 bps rate hike, the highest six month return in the Savings.com.au database.
Its top rate is for one year was hiked 20 bps to reach 4.65% p.a., which was briefly the highest one year rate on market before the hikes from Judo Bank.
AMP GO term deposits are available for deposits between $5,000 and $10,000,000.
Read more: AMP Go term deposits
Judo breaks new ground
| Term length | Deposit size | Payment frequency | Interest rate (change) |
|---|---|---|---|
| Six months | $1,000-$2m | End of term | 4.40% p.a. (+0.10) |
| Seven months | $1,000-$2m | End of term | 4.55% p.a. (+0.25) |
| Nine months | $1,000-$2m | End of term | 4.45% p.a. (+0.25) |
| One year | $1,000-$2m | End of term | 4.75% p.a. (+0.20) |
| Two years | $1,000-$2m | Annually | 4.50% p.a. (+0.10) |
| Three years | $1,000-$2m | Annually | 4.40% p.a. (+0.10) |
| Four years | $1,000-$2m | Annually | 4.65% p.a. (+0.20) |
| Five years | $1,000-$2m | Annually | 4.80% p.a. (+0.25) |
Judo Bank has firmly reestablished itself among the heaviest hitters in the TD market with its latest round of rate hikes.
Its new one year rate beats the highest rate on offer at any other provider in the Savings.com.au database, 5 bps ahead of Australian Military Bank for nine/ten/eleven month terms and Rabobank for five years.
That isn't even the highlight though - Judo now offers 4.80% p.a. for five year term deposits, perilously close to cracking the 5% mark.
That means if you deposited $100,000 with Judo right now, you could earn $4,800 annually for the next five years (subject to income tax).
Bank Australia & Qudos reveals market leading two, three year rate
| Term length | Deposit size | Payment frequency | Interest rate (change) |
|---|---|---|---|
| Six months | $500-$3,000,000 | End of term | 4.40% p.a. (+0.05) |
| One year | $500-$3,000,000 | End of term | 4.50% p.a. (+0.15) |
| Two years | $500-$3,000,000 | End of term | 4.60% p.a. (+0.40) |
| Three years | $500-$3,000,000 | End of term | 4.70% p.a. (+0.10) |
Recently-merged Bank Australia and Qudos Bank adjusted TD rates this week, taking both two and three year rates to new heights.
At 4.60% p.a. and 4.70% p.a. respectively, these are the highest two- and three-year rates in the Savings.com.au database.
Latest short term rates
Several other smaller banks hiked term deposit rates last week.
These were the stand out new returns for term lengths below one year:
| Bank | Term length | Deposit size | Interest rate |
|---|---|---|---|
| Bank of Us | Three months | $5000+ | 4.40% p.a. (+0.40) |
| Bank First | Six months | $500+ | 4.40% p.a. (+0.10) |
| Bank of Sydney | Six months (online only) | $1,000+ | 4.40% p.a. (+0.05) |
| Gateway Bank | Six months | $1,000+ | 4.45% p.a. (+0.05) |
| Great Southern Bank | Seven months | $5,000+ | 4.45% p.a. (+0.10) |
| AMP Bank | Nine months | $5,000-$24,999 | 4.45% p.a. (+0.20) |
| Bank First | Nine months | $500+ | 4.45% p.a. (+0.05) |
| Bank of Us | Nine months | $5,000+ | 4.50% p.a. (+0.30) |
| AMP Bank | Ten months | $5,000-$24,999 | 4.50% p.a. (+0.15) |
| AMP Bank | Ten months | $25,000+ | 4.55% p.a. (+0.15) |
New one year rates
| Bank | Deposit size | New interest rate (interest paid end of term) |
|---|---|---|
| Regional Australia Bank | $1,000-$500,000 | 4.40% p.a. (+0.60) |
| Bank of Queensland | $1,000+ | 4.40% p.a. (+0.10) |
| AMP Bank | $5,000-$24,999 | 4.45% p.a. (+0.20) |
| Great Southern Bank | $5,000+ | 4.45% p.a. (+0.20) |
| AMP Bank | $25,000+ | 4.50% p.a. (+0.20) |
| Bank First | $500+ | 4.50% p.a. (+0.10) |
| Great Southern Bank (Platinum Plus product, available only for customers aged 55 or over) | $5,000+ | 4.55% p.a. (+0.20) |
| Gateway Bank | $1,000+ | 4.60% p.a. (+0.05) |
Other movers
- Summerland Bank varied term deposit rates by up to 60 bps. Its top rate is now 4.30% p.a. for one year terms on deposits over $100,000.
- Teachers Mutual Group hiked term deposit rates at all the banks in its stable, leaving the top rates at 4.30% p.a. for six month terms and 4.40% p.a. for one year.
- Australian Military Bank cut five month rates 15 bps to 4.40% p.a.
- Heritage Bank hiked six month rates 10 bps to a top return of 4.15% p.a. and one year rates 30 bps to the same top rate. These are also the new rates at People's Choice.
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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 | – | – |
