In the book of Matthew, there's a parable where a master entrusted three servants with some of his money; two of them invested it and generated a return while the third hid the money and only handed back what he originally was given.

According to Jesus, the master praised the first two, but reprimanded the "wicked and lazy" third, who was "thrown into darkness" as punishment.

You might infer that means Jesus would be a fan of term deposit products, although there is also some stuff in the Old Testament about interest not being cool so this could be an inappropriate conclusion.

Or maybe you're not Christian or religious at all and you just want to see some juicy TD rates. 

In any case, Great Southern Bank and Challenger Bank were among several that decided to honour the Easter weekend with some delicious term deposit rate hikes.

Challenger Bank boosts rates 5 bps

Term length Deposit size Payment Frequency Interest Rate (Percentage Point Change)
Six months $25,000*-$1,000,000 End of term 5.15% p.a (+0.05)

*$5,000 for existing customers

After this week's boost, Challenger and Gateway Bank are now neck and neck at the summit of the six month term deposit market in Australia.

At 5.15% p.a, that means a $25,000 deposit right now at either could return $643.75 by September, before tax.

Gateway offers deposits starting at $1,000 though, so may retain a slight edge in some customers' eyes who have lower balances.

Both products however are behind that of Credit Union SA, where a seven month term can currently return 5.25% p.a.

Great Southern Bank boosts rates up to 70 bps

Term length Deposit size Payment Frequency Interest Rate (Percentage Point Change)
Three months $5,000-$99,999,999.99 End of term 4.90% p.a (+0.70)
Nine months $5,000-$99,999,999.99 End of term 4.95% p.a (+0.45)
One year $5,000-$99,999,999.99 End of term 5.00% p.a (+0.30)

Great Southern Bank (GSB) was a big mover this week, cracking the 5% threshold for one year terms.

Per Savings.com.au's market research, that's 15 basis points behind the market leaders for one year, also Gateway Bank at 5.15% p.a.

At 4.90% p.a, GSB is level with Gateway for three months, and 5 basis points ahead of Judo, one of the other traditional heavy hitters for TDs.

Rabobank boosts rates up to 20 bps

Term length Deposit size Payment Frequency Interest Rate (Percentage Point Change)
Three months  $1,000-$2,000,000 Annually 4.80% p.a (+0.10)
Six months $1,000-$2,000,000 Annually 4.85% p.a (+0.10)
Nine months $1,000-$2,000,000 Annually 4.70% p.a (+0.20)
Five years $1,000-$2,000,000 End of term 4.90% p.a (+0.20)

For once, we have something other than pure speculation to go off to explain some rate changes.

"We have made some changes to our Term Deposit pricing to reflect movements in the yield curve which has resulted in increases to our three month, six month, nine month and five year rates," RaboBank head of online savings Julie Blanchard told savings.com.au.

The yield curve basically shows the return on different bonds with varying terms until maturity, and is often used to estimate how investors are predicting interest rates moving forward.

Other movers

  • BCU boosts rates up to 70 bps

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Provider

At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
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Term Deposit - 6 months

  • Guaranteed rate of return
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  • Choose your own term - Options range from one month to five years
Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

Term Deposit - 6 months

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

    Term Deposit - 6 months

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

      Term Deposit ($50000+) - 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

          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 19, 2024. View disclaimer.

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