To no one's surprise, the cash rate will remain at 4.35% at least until 7 May, where a hold will once again be the likeliest outcome.

Barring significant changes to the outlook for inflation, rates will probably be steady for a while yet, so there could be plenty of jostling for position for term deposit market share, particularly for shorter terms.

This week saw rate hikes from two banks in Australia's second tier, as well as fresh entrants to the dwindling club of products with rates starting with a 5.

Bank of Queensland boosts rates 10 bps

Term length Deposit size Payment frequency Interest Rate (Percentage Point Change)
Six months $5,000-$250,000 End of term 4.90% p.a (+0.10)
Nine months $5,000-$250,000 End of term 4.90% p.a (+0.10)

After this weeks increases, BOQ is just 10 basis points away from cracking the 5% p.a threshold.

These are the highest rates available at BOQ, above one year (4.80% p.a), which is a common theme among many providers, given the general expectation that rates will start to come down by the end of this year.

For both six month and nine month rates, the current market leaders are at 5.15% p.a (Gateway Bank and Challenger Bank).

Macquarie Bank hikes rates 5 bps

Term length Deposit size Payment frequency Interest Rate (Percentage Point Change)
Three months $5,000-$1,000,000 End of term 4.85% p.a (+0.05)
One year $5,000-$1,000,000 End of term 4.70% p.a (+0.05)

Term deposit rate movements from Macquarie don't tend to be very exciting, with rate movements rarely exceeding 5 basis points.

This week was no different, with the customary 0.05% tweak applied upwards to three month and one year products.

Last week, one year rates were cut by the same amount, so either Macquarie analysts have seen something in recent data or someone can't make their mind up.

For three month terms, Macquarie's rate of 4.85% p.a is now ahead of the likes of Firstmac and Bank of Sydney (both at 4.80% p.a), and 5 basis points behind Gateway Bank at 4.90% p.a.

Bank of us boosts rates 20 bps

Term length Deposit size Payment frequency Interest Rate (Percentage Point Change)
Six months $5,000-$200,000 End of term 5.00% p.a (+0.20)

The biggest mover this week was Bank of us, where six month term deposit rates received a 20 basis point boost to crack 5%.

The customer owned bank moves just 15 basis points off Gateway Bank, the market leaders.

Bank of us products are generally only available to Tasmanian residents only, or at least those with an Apple Isle drivers licence.

Other movers

  • Horizon Bank cuts rates up to 20 bps
  • RACQ cuts rates 15 bps
  • MyState Bank increase rates up to 20 bps

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Provider

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    At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

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      Monthly, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]50000$product[$field["value"]]$product[$field["value"]]More details

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          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 July 16, 2024. View disclaimer.

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