The CPI indicator rose 3.6% over the twelve months to 31 March, rising 1% through the quarter.

This came in hotter than market expectations of a 3.5% annual price increase, 0.8% quarterly.

The result was enough for Westpac Chief Economist Luci Ellis, who until October last year was Assistant Governor of the RBA, to push back her forecast for when Australia can expect cash rate cuts.

"Given the slower progress on disinflation this quarter and the lower starting point for labour market slack, we now expect the first rate cut to occur after the November meeting, rather than September as previously expected," she explained.

If you have a variable rate mortgage or a HECS debt, this was probably upsetting news, but for term deposit devotees the door for bigger returns looks slightly more ajar.

These were the providers who changed rates this week.

AMP hiked by up to 60 basis points

Term length Deposit size Payment frequency  Interest rate (Change)
Six months $25,000-$10,000,000 End of term 5.05% p.a (+0.10)
Nine months $25,000-$10,000,000 End of term 5.05% p.a (+0.15)
One year $25,000-$10,000,000 End of term 5.05% p.a (+0.15)
Two years $25,000-$10,000,000 Annually 4.70% p.a (+0.60)

For the second week in a row, AMP Bank has made major changes to rates across its range of term deposit products.

Last week, AMP boosted terms one year and shorter while scaling back returns on terms of three or more years, in line with market expectations about the future of the cash rate.

This time around, movement was exclusively positive, with six month, nine month and one year products all back over the 5% p.a mark.

If you haven't got $25,000, these products are all also available for smaller deposits (starting at $5,000) for a 5 basis point discount, taking it down to 5.00% p.a.

AMP is currently the largest bank over this threshold, 15 and 10 basis points respectively behind the market leaders for six months and one year.

Arab Bank Australia boosts rates up to 45 bps

Term length Deposit size Payment frequency  Interest rate (Change)
Six months $1-$9,999.99 End of term 4.60% p.a (+0.15)
Nine months $1-$9,999.99 End of term 4.55% p.a (+0.45)
Six months $10,000-$499,999.99 End of term 5.10% p.a (+0.15)
Nine months $10,000-$499,999.99 End of term 5.05% p.a (+0.45)

Arab Bank Australia was another provider to also crack the 5% mark with big increases this week.

It's the boldest TD move the bank has made over the past 18 months, catapulting itself among the frontrunners for six and nine months.

For six month terms, the highest available rate at Arab Bank is now level with fan favourites Judo, although Judo offers 5.10% on deposits starting at $1,000.

MyState hikes rates 150 bps

Term length Deposit size Payment frequency  Interest rate (Change)
Seven months $5,000-$99,999,999.99 End of term 5.00% p.a (+1.50)

MyState Bank was this week's biggest mover with a monstrous 150 basis point increase to seven month terms.

This clears nine month terms at MyState (4.85% p.a) which were previously the highest the bank had to offer.

The seven month space is where you'll find the current outright market leaders for term deposits in Australia, Credit Union SA, at 5.25% p.a.

Other movers

  • Regional Australia Bank cut rates up to 15 bps
  • Hume Bank varies rates up to 25 bps

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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.

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
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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.

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