After last week's round of Easter rate boosts, there was less to cheer about this time around for term deposit fans, with most movements downward this time around.

Macquarie and Bank of Sydney were among the providers to cut back the returns on offer.

The news wasn't all sombre though, with a particularly notable round of rate hikes from customer owned MOVE Bank.

MOVE Bank hike rates up to 30 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three months $5,000-$2,000,000 End of term 4.85% p.a. (+0.10)
Five months $5,000-$2,000,000 End of term 5.10% p.a. (+0.30)
Six months $5,000-$2,000,000 End of term 5.00% p.a. (+0.15)
Nine months $5,000-$2,000,000 End of term 5.05% p.a. (+0.20)

MOVE Bank was the exception to the rule this week, with hikes up to 30 bps across some of its shorter term products.

In particular, a 5.10% p.a. return on the niche five month term appears to be a market leading rate per Savings.com.au's market research.

The rate on the three month product at MOVE Bank is just five basis points behind its one year offering.

MOVE is one of many banks to have shifted emphasis to shorter term deposit products recently, given rates are expected to remain unchanged for an extended period.

This unusual decision from MOVE to offer the highest rate on five month terms could suggest its analysts think it's very unlikely for the RBA to move until at least after September.

Macquarie Bank cuts rates 5 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three months $5,000-$1,000,000 End of term 4.80% p.a. (-0.05)
One year $5,000-$1,000,000 End of term 4.65% p.a. (-0.05)

Readers who also caught the TD wrap on 22 March might notice something about this rate movement from Macquarie.

If you don't remember, or can't be bothered clicking the link, I'll help you out: that week Macquarie boosted three month and one year term deposits by 5 basis points, to 4.85% p.a. and 4.70% p.a. respectively.

The week before that, one year products were cut 5 basis points from 4.70% p.a. to 4.65% p.a..

There's probably a very logical reason to explain this back and forth, but it's funny to imagine this bitterly dividing the Macquarie product team, with the 4.65 faction wrestling back control this week.

Bank of Sydney cuts rates 10 bps

Term length Deposit size Payment frequency Interest rate (Change)
Nine months $1,000-$1,000,000 End of term 5.00% p.a. (-0.10)
One year $1,000-$1,000,000 End of term 4.90% p.a. (-0.10)

Bank of Sydney was another to slash term deposit returns this week, taking one year rates below the 5% p.a.. threshold.

The highest rate at Bank of Sydney is still 5.10% p.a. on six months terms, which is just 5 basis points off the market leaders.

Other movers


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.

Provider

At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • Guaranteed rate of return
  • Manage your term deposit online
  • Choose your own term - Options range from one month to five years

Term Deposit - 6 months

  • Guaranteed rate of return
  • Manage your term deposit online
  • Choose your own term - Options range from one month to five years
At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2500031$product[$field["value"]]$product[$field["value"]]More details

Term Deposit - 6 months

    Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

    Term Deposit ($1000-$500001) - 6 months

      At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10008$product[$field["value"]]$product[$field["value"]]More details

      Online Term Deposit - 6 months

        At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

        SMSF TD - 6 months (at maturity)

          Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10000$product[$field["value"]]$product[$field["value"]]More details

          Term Deposit ($10k-$500k) - 6 months

            Important Information and Comparison Rate Warning

            All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of May 20, 2024. View disclaimer.

            Picture by Micheile Henderson on Unsplash