- Rabobank has become the first to crack the 5% term deposit mark in the current upcycle
- The Dutch-owned bank is offering 5.10% p.a. on amounts over $500,000 deposited for five years
- Rabo and Judo Bank were the first to offer a term deposit rate with a '5' in front in 2026
Rabobank is the first to crack the 5% barrier in the latest round of term deposit increases.
The Dutch-based international bank is offering 5.10% p.a. for a five-year deposit for amounts over $500,000 to $2 million, with interest paid annually.
The rate drops to 5.00% p.a. for balances between $100,000 and $500,000.
The lower rate matches the 5.00% p.a. offered by challenger bank Judo Bank, although Judo's minimum deposit amount is $1,000.
Judo Bank and Rabobank were the first in the current cycle to offer term deposit interest rates with a '5' in front.
Rabobank's new term deposit rates
Rabobank kicked off the week with an across-the-board lift of its already competitive term deposit rates, most rising by 0.10% but some seeing increases of up to 0.20%.
Here's a selection of the new rates below where interest is paid annually:
| Term | $1,000 - $100,000 | $100,000.01 - $500,000 | $500,000.01 - $ 2 million |
| 3 month | 4.30% p.a. | 4.40% p.a. | 4.50% p.a. |
| 6 months | 4.35% p.a. | 4.45% p.a. | 4.55% p.a. |
| 9 months | 4.45% p.a. | 4.55% p.a. | 4.65% p.a. |
| 1 year | 4.55% p.a. | 4.65% p.a. | 4.75% p.a. |
| 2 years | 4.50% p.a. | 4.60% p.a. | 4.70% p.a. |
| 3 years | 4.60% p.a. | 4.70% p.a. | 4.80% p.a. |
| 4 years | 4.70% p.a. | 4.80% p.a. | 4.90% p.a. |
| 5 years | 4.90% p.a. | 5.00% p.a. | 5.10% p.a. |
Rabobank offers the option for interest to be paid monthly on all its terms, from 12 months to 5 years, for customers willing to lock in rates 0.15% lower than those above.
Quarterly interest payments see the rates drop by 0.10%, while semi-annual interest available on some terms at rates 0.05% lower.
What is happening with interest rates?
Rabobank's latest term deposit rate increase is another sign the market is adjusting for a rate-hiking environment.
Last week, merger partners G&C Mutual and Unity Bank announced market-high six- and nine-month term deposit rates while Macquarie Bank announced a new 4.80% p.a. one-year rate.
Economists from all of Australia's big four banks now agree the Reserve Bank of Australia (RBA) is likely to raise the cash rate at its May monetary policy meeting.
ANZ was previously the hold-out on forecasting a May interest rate hike, but joined its peers last week after January inflation data was released.
While the next RBA monetary policy meeting is in two weeks, the board has a track record of waiting to see quarterly inflation data before shifting the cash rate.
The next quarterly inflation data isn't due until late April, putting a 3 May cash rate hike in the box seat.
The RBA will no doubt also be considering economic fallout from unfolding unrest in the Middle East.
The conflict is expected to spike oil prices in the short term although it's difficult to gauge further economic implications at this stage.
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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 | – | – |
