On Tuesday, the RBA confirmed the forecasts of a few analysts and opted not to raise the cash rate - which would have been the 11th in a row - which was a decision that seemed out of the question a few short weeks ago.
While Governor Philip Lowe said the RBA still expects 'some further tightening of monetary policy may well be needed,' it's likely beleaguered mortgage holders across the country will be desperate for this to mark an inflection point for the rate hikes.
For savers, Tuesday's decision could mark a flashpoint in the calendar, prompting a few to squirrel away money in a term deposit, safe from rate fluctuations.
Banks have spent much of the start of this year trying to outgun each other, with a new market leading term deposit or savings account rate seemingly announced every other week.
Last week was the first time in a while some providers cut term deposit rates, and this week continues that trend.
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.
| Bank | Term Deposit | Interest Rate | Interest Frequency | Term | Automatic Rollover | Maturity Alert | Early Withdrawal Available | Minimum Deposit | Maximum Deposit | Notice Period to Withdraw | Account Keeping Fee | Online Application | Joint Application | Tags | Row Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
4.30% p.a. | At Maturity | 3 months | $5,000 | $10,000,000 | – | – | ||||||||||||||
4.80% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – | ||||||||||||||
4.50% p.a. | At Maturity | 6 months | $5,000 | $1,000,000 | – | – | ||||||||||||||
4.60% p.a. | At Maturity | 6 months | $5,000 | $19,999 | – | – | ||||||||||||||
4.25% p.a. | At Maturity | 11 months | $5,000 | $10,000,000 | – | – |
| Promoted | Disclosure |
Macquarie varies rates by up to 10 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% change) |
| Six months | $5,000-$1,000,000 | End of term | 4.30% p.a (+0.05) |
| One year | $5,000-$1,000,000 | End of term | 4.50% p.a (-0.10) |
After cutting rates on longer terms last week, Macquarie announced this week it would also bring down rates on its one year terms, previously at 4.60% p.a.
One year term deposit rates have been highly competitive over the past few weeks, with the likes of Judo, Bank First and AMP continually raising rates along with Macquarie.
Coinciding with this weeks monetary policy decision, it seems Macquarie is looking to hedge its bets, slightly bringing down rates to stay ahead of the curve if the cash rate continue to hold, or even start to go down.
Six month terms saw rates slightly increased though to reach 4.30% p.a, slightly behind the market leading AMP who offer 4.40% p.a.
AMP increases term deposits by up to 60 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% change) |
| Three months | $5,000-$24,999.99 | End of term | 3.90% p.a (0.6) |
| Three months | $25,000-$99,999.99 | End of term | 3.95% p.a (0.6) |
| Three months | $100,000-$499,999.99 | End of term | 3.95% p.a (0.6) |
| One year | $5,000-$24,999.99 | End of term | 4.60% p.a (0.05) |
| One year | $25,000-$99,999.99 | End of term | 4.65% p.a (0.05) |
| One year | $100,000-$499,999.99 | End of term | 4.65% p.a (0.05) |
| One year | $5,000-$24,999.99 | Monthly | 4.40% p.a (0.05) |
| One year | $25,000-$99,999.99 | Monthly | 4.45% p.a (0.05) |
| One year | $100,000-$499,999.99 | Monthly | 4.45% p.a (0.05) |
Unlike Macquarie, AMP has continued to push up rates despite rate uncertainty, taking the highest rate on its one year term deposits to a market leading 4.65% p.a.
The biggest movements AMP made were to three month terms, up 60 basis points to sit just 0.05% away from breaking the 4% p.a threshold.
AMP have one of the most consistent range of term deposit products available in Australia, with all of its terms six months and longer returning over 4% p.a.
Greater Bank increases rates by up to 50 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% change) |
| Three months | $5,000-$49,999.99 | End of term | 3.00% p.a (0.5) |
| Three months | $50,000-$99,999,999.99 | End of term | 3.00% p.a (0.5) |
| One year | $5,000-$49,999.99 | End of term | 4.20% p.a (0.1) |
| One year | $50,000-$99,999,999.99 | End of term | 4.20% p.a (0.1) |
| One year | $5,000-$49,999.99 | Monthly | 4.10% p.a (0.1) |
| One year | $50,000-$99,999,999.99 | Monthly | 4.10% p.a (0.1) |
Greater Bank was another to significantly increase rates on shorter term deposits, suggesting it anticipates further cash rate hikes in the coming months.
Its three month products still lag behind the likes of AMP though, having just risen to 3% p.a.
Greater Bank also pushed up one year terms slightly, to sit over 4%.
Bank Australia varies term deposit rates by up to 40 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% change) |
| Three months | $500-$1,000,000 | End of term | 3.55% p.a (0.35) |
| Six months | $500-$1,000,000 | End of term | 4.15% p.a (0.4) |
| Six months | $500-$1,000,000 | Monthly | 4.05% p.a (0.4) |
| Nine months | $500-$1,000,000 | End of term | 4.00% p.a (0.25) |
| Three years | $500-$1,000,000 | End of term | 4.00% p.a (-0.2) |
| Three years | $500-$1,000,000 | Monthly | 3.90% p.a (-0.2) |
In a common theme this week, Bank Australia continued to move up rates on shorter term deposits, but cut returns on three year terms.
Another notable feature of Bank Australia's announcement was that putting your money away with them for six months will now have better returns than nine months.
This may seem counter intuitive, but suggests the bank is expecting a substantial fall to the cash rate towards the back end of this year.
Other movers
- Summerland Credit Union increased rates by up to 35 basis points
- Northern Inland increased rates by up to 50 basis points
Picture by Towfiqu Barbhuiya
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
Harry O'Sullivan
Staff Writers
