It was another quiet week in the term deposit space, with most providers seemingly content for the moment with the rates on offer.

As far as the future of the RBA cash rate goes, the biggest news this week came on Wednesday, with the US Consumer Price Index for March coming in significantly hotter than anticipated.

Brian Martin, ANZ Head of Global Economics, said that although "scrutiny of the CPI data reveals the figures are not as alarming as the headline suggests", it means the Federal Reserve may be more cautious before cutting rates.

"The market is now pricing a 50% chance of a July cut and the first full cut in November," he said.

It's been suggested that this could in turn delay the RBA from bringing rates down, although per ANZ analysis, markets continue to expect rate cuts domestically at the start of Q4.

The RBA's next monetary policy decision will be held from 7 May, and although no rate changes are expected, Governor Michele Bullock's accompanying statement will be carefully analysed to see if the RBA outlook has changed.

In the weeks until then, it's possible there may be some term deposit rate changes on the back of shifting expectations.

For now though, here are the few providers who did adjust rates this time around.

Challenger Bank hits market leading six month rate

Term length Deposit size Payment frequency Interest rate (Change)
Six months $25,000*-$1,000,000 End of term 5.20% p.a (+0.05)

*$5,000 for existing customers

With just a 5 bps rate hike, Challenger Bank became the outright market leaders for six month term deposits, ahead of Gateway Bank at 5.15% p.a.

A $100,000 deposit with Challenger right now could earn $2,600 by maturity in October, before tax.

However, Challenger remains 5 basis points behind the seven month term deposit at Credit Union SA, where the rate is still 5.25% p.a.

This moves comes as the bank is expected to be swallowed up by reverse mortgage provider Heartland Finance; the acquisition is subject to regulatory approval, but Heartland expects it to be finalised by the end of April.

Through this move, this would make Heartland the first NZ-based institution to be granted an Australian banking licence.

Australian Unity varies rates 20 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three months $5,000-$99,999,999.99 End of term 4.75% p.a (+0.20)
One year $5,000-$99,999,999.99 End of term 4.80% p.a (-0.20)

The top rates at the moment tend to be for shorter terms, with one year rates trending downwards given the cash rate expectations.

This week, Australian Unity was the latest bank to cut one year terms, relinquishing its 5% status.

Six and nine month terms at Aus Unity still offer a 5% p.a return, while the three month product had rates boosted 20 bps.

Other movers

  • Arab Bank Australia cut rates up to 10 bps
  • Bank First boosted rates up to 10 bps


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 terms up to 12 months. 


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 Noah Bogaard on Unsplash