As far as term deposits are concerned, it was another slow news week with just two providers adjusting rates.

With the RBA cash rate expected to remain at 4.35% for at least another few months, the market has seemingly hit something of an equilibrium and the top end has been relatively stable.

The highs of mid last year look increasingly unlikely to be reached again, but there are still plenty of products with strong returns.

Judo, Gateway Bank, Challenger Bank and Bank of Sydney are among the institutions that still have rates available at 5.10% p.a or more, with six month terms often the peak.

As of 19 April, the returns on these products in particular stand out.

Top term deposit rates in Australia

Provider Term length Deposit size Interest rate
Credit Union SA Seven months $1,000-$99,999,999.99 5.25% p.a
Challenger Bank Six months $25,000*-$1,000,000 5.20% p.a

*$5,000 for existing Challenger customers

The top end of the market was left alone this week, but there were still two banks that rolled out fresh rates.

AMP varies rates up to 90 bps

Term length Deposit size Payment frequency Interest rate (Change)
Six months $25,000-$1,000,000 End of term 4.95% p.a (+0.15)
Nine months $25,000-$1,000,000 End of term 4.90% p.a (+0.15)
One year $25,000-$1,000,000 End of term 4.90% p.a (+0.15)
Three/Four/Five years $25,000-$1,000,000 Annually 3.30% p.a (-0.90)

In keeping with the rest of the market, AMP bumped up shorter term deposit rates this week while simultaneously slashing returns on three year products and above.

While AMP is still well behind what's on offer at some of the providers listed above, it is very competitive compared to other larger banks.

For one year terms, its top rates are now level with ING on 4.90% p.a, while six month returns are 10 bps above the maximum rate on offer at both ING and Suncorp (4.85% p.a).

TD fans with less than $25,000 to play with are still welcome at AMP, but all the above rates are discounted 5 bps for deposits between $5,000 and $24,999.

AMP Chief Economist Shane Oliver said while market expectations have shifted to later this year or even early next year, Australia is still on track for rate cuts.

"Despite the relative resilience of economic activity inflation has fallen sharply globally," he said in his weekly wrap up.

"In the US, cooling measures of labour market tightness are continuing to point to lower services inflation ahead.

"It’s a similar picture in Australia. So, while rate cuts have been delayed, they are still likely."

He acknowledged the situation in the Middle East remains a risk to the upside, but that things may not turn out as bad as some fear.

"[Iranian strikes were] well flagged, measured and there was minimal damage and designed not to provoke a bigger Israeli counter-retaliation," he explained.

"So far so good - markets have not gone into free fall and the oil price has not surged."

Other movers

  • Community First hikes six month terms by 10 bps


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.


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
  • Manage your term deposit online
  • Choose your own term - Options range from one month to five years

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.

            Picture by Andre Taissin on Unsplash