There isn't yet consensus about the direction the RBA will take at next month's monetary policy meeting, so the majors and some of the other larger banks have left rates unchanged these past couple of weeks.
It's still a highly competitive market though, and there were some major rate increases this week, including a new market leader for 12 month terms.
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Bank of Sydney increases rates by up to 45 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% point change) |
| Six months | $1,000-$500,000 | End of term | 4.55% p.a (+0.15) |
| One year | $1,000-$500,000 | End of term | 4.70% p.a (+0.35) |
Bank of Sydney headlined this week's rate moves, taking the number one spot for both six months and one year term deposits according to Savings.com.au market research.
Last week, the bank moved level with AMP on 4.40% p.a for six month terms, but the smaller bank fired with both barrels and now sits ahead of the competition on 4.55% p.a.
One year terms saw an even greater jump, up 35 basis points to 4.70% p.a, above AMP who offer 4.65% p.a.
AMP also has a minimum deposit size of $25,000 to reach that rate, with customers who deposit less than this receiving 4.60% p.a.
Bank First increases rates by up to 125 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% point change) |
| Four months | $500-$99,999.99 | End of term | 4.20% p.a (+1.25) |
| Six months | $500-$99,999.99 | End of term | 4.40% p.a (+0.10) |
| One year | $500-$99,999.99 | End of term | 4.60% p.a (+0.05) |
Bank First made aggressive moves this week, hiking up four month (120 days) terms by 125 basis points.
Six month and one year terms also saw more modest growth, but moved up to be among the most competitive in the field.
A 4.40% p.a interest rate for six month term deposits is level with the previous market leaders AMP, but Bank First can't claim the title after Bank of Sydney moved up to 4.55% p.a.
The likes of Judo and Macquarie have been competing to offer customers the highest rate for term deposits, but their rates have been stagnant for weeks, suggesting a new set of contenders who are prioritising term deposits.
Bendigo Bank increases rates by up to 285 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% point change) |
| Six months | $5,000-$5,000,000 | End of term | 3.85% p.a (+2.85) |
| Six months | $5,000-$5,000,000 | Monthly | 3.80% p.a (+2.85) |
| One year | $5,000-$5,000,000 | End of term | 4.05% p.a (+0.30) |
| One year | $5,000-$5,000,000 | Monthly | 4.00% p.a (+0.30) |
Bendigo was another big mover this week, hoisting up previously uncompetitive six month term deposit rates by a huge 285 basis points.
This is the second time in the last few weeks Bendigo have made moves like this, hiking up four and nine month term deposit rates by large amounts at the end of March.
These rates though continue to lag behind the market leaders like Bank First and Bank of Sydney.
Macquarie varies rates by up to 10 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% point change) |
| Three months | $5,000-$1,000,000 | End of term | 4.10% p.a (+0.1) |
| Six months | $5,000-$1,000,000 | End of term | 4.20% p.a (-0.1) |
| Nine months | $5,000-$1,000,000 | End of term | 4.15% p.a (-0.1) |
| One year | $5,000-$1,000,000 | End of term | 4.40% p.a (-0.1) |
In more low key news, Macquarie tweaked rates slightly on its term deposit rates.
In a common theme over the past few weeks, three month terms increased while longer terms went down.
Most economists expect the cash rate to have started to decline towards the back end of this year, so many banks are likely to bring down longer term rates to reflect this.
Horizon Bank decreases rates by up to 50 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% point change) |
| Two years | $1,000-$99,999,999.99 | End of term | 3.90% p.a (-0.2) |
| Two years | $1,000-$99,999,999.99 | Monthly | 3.80% p.a (-0.2) |
RACQ varies rates by up to 50 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% point change) |
| Three-five months | $1,000-$99,999,999.99 | End of term | 3.50% p.a (+0.50) |
| Six months | $1,000-$99,999,999.99 | End of term | 4.00% p.a (+0.15) |
| Seven-eight months | $1,000-$99,999,999.99 | End of term | 3.50% p.a (-0.35) |
| Nine months | $1,000-$99,999,999.99 | End of term | 4.20% p.a (+0.20) |
| Ten-eleven months | $1,000-$99,999,999.99 | End of term | 3.75% p.a (-0.25) |
| One year | $1,000-$99,999,999.99 | End of term | 4.50% p.a (+0.15) |
| Three-five years | $1,000-$99,999,999.99 | Annually | 4.10% p.a (-0.15) |
Bank Australia varies rates by up to 60 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% point change) |
| Three months | $500-$1,000,000 | End of term | 3.60% p.a (+0.05) |
| Nine months | $500-$1,000,000 | End of term | 3.60% p.a (-0.40) |
| One year | $500-$1,000,000 | End of term | 4.00% p.a (-0.20) |
| Two years | $500-$1,000,000 | End of term | 3.60% p.a (-0.60) |
| Three years | $500-$1,000,000 | End of term | 3.60% p.a (-0.40) |
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Harry O'Sullivan
Harrison Astbury
Staff Writers
