Now that continual RBA rate hikes do not seem like an inevitability, most of the major term deposit providers opted to leave rates unchanged this week, seemingly waiting to see which way the wind is blowing.

Earlier this week, the ABS revealed household spending growth declined in February, which is a sign that high interest rates are having their intended effect.

Unemployment though remains low, which contributes to inflation through higher demand and a bullish business environment.


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$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • Easy online application
  • Interest can be paid to other institutions
  • Maturity alert by email and phone

Term Deposit - 6 months

  • Easy online application
  • Interest can be paid to other institutions
  • Maturity alert by email and phone
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"]]100031$product[$field["value"]]$product[$field["value"]]More details
    • Deposits are protected up to a limit of $250,000 for each account
    • Added loyalty bonus of 0.10%

    Personal Term Deposit - 6 months

    • Deposits are protected up to a limit of $250,000 for each account
    • Added loyalty bonus of 0.10%
    At Maturity$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 February 28, 2024. View disclaimer.

      Bank of Sydney increases rates by up to 35 basis points

      Term length Deposit size Payment frequency Interest rate (% change)
      Three months $1,000-$500,000 End of term 4.05% p.a (+0.17)
      Four months $1,000-$500,000 End of term 4.15% p.a (+0.35)
      Six months $1,000-$500,000 End of term 4.40% p.a (+0.07)

      The headline for Bank of Sydney's rate movements this week is its six month term deposits, which increased by 7 basis points to move level with market-leading AMP.

      Three and four month terms also saw significant movement, with both now returning more than 4% p.a.

      Bank of Sydney will be hoping that while the bigger players hold, it can swoop in and grow its market share of short term deposits.

      Qudos Bank increases rates by up to 30 basis points

      Term length Deposit size Payment frequency Interest rate (% change)
      Six months $5,000-$9999.99 End of term 4.15% p.a (+0.1)
      Six months $10,000-$99,999,999.99 End of term 4.15% p.a (+0.1)
      One year $5,000-$9999.99 End of term 4.50% p.a (+0.3)
      One year $10,000-$99,999,999.99 End of term 4.50% p.a (+0.3)

      Qudos, a mutual customer owned bank based in Sydney, also saw an opportunity to attract customers with higher term deposit rates.

      Six month terms are up by 10 basis points, while customers willing to put their money away with Qudos for one year can now earn a 4.50% p.a return.

      This puts Qudos among the likes of AMP, Macquarie, Judo and Bank First as the highest rate for a one year term deposit.

      Many providers over the past couple of weeks decreasing rates on longer term deposits, anticipating rates to decline later this year.

      Arab Bank Australia increases rates by up to 85 basis points

      Term length Deposit size Payment frequency Interest rate (% change)
      Six months $1-$1999.99 End of term 3.75% p.a (+0.75)
      Six months $2,000-$4,999.99 End of term 3.75% p.a (+0.75)
      Six months $5,000-$9,999.99 End of term 3.75% p.a (+0.75)
      Six months $10,000-$49,999.99 End of term 4.00% p.a (+0.5)
      One year $1-$1999.99 End of term 4.00% p.a (+0.25)
      One year $2,000-$4,999.99 End of term 4.00% p.a (+0.25)
      One year $5,000-$9,999.99 End of term 4.00% p.a (+0.25)
      One year $10,000-$49,999.99 End of term 4.40% p.a (+0.4)

      A big mover this week was Arab Bank Australia, the Aussie subsidiary of the largest Arabic banking network in the world.

      Arab Bank specialise in international trade around North Africa and the Middle East, as you might expect, but are also committed to offering banking services to Australians.

      One year term deposits at Arab Bank rose to all sit at least at 4% p.a. while six month terms saw big jumps of up to 75 basis points.

      Arab Bank are one of the few providers to offer services for deposits of almost all size, with term deposit ranges beginning at just $1.

      The Capricornian increases rates by up to 30 basis points

      Term length Deposit size Payment frequency Interest rate (% change)
      Six months $5,000-$250,000 End of term 3.00% p.a (+0.3)
      Six months $5,000-$250,000 Monthly 2.80% p.a (+0.3)
      One year $5,000-$250,000 End of term 3.85% p.a (+0.15)
      One year $5,000-$250,000 Monthly 3.65% p.a (+15)

      Finally, North Queensland bank the Capricornian moved up rates this week, by up to 30 basis points.