Australia's banks and other term deposit providers look to have reached a consensus over which direction they see interest rates heading.

The last few weeks have seen mostly uniform cuts to term deposit rates, with macroeconomic conditions suggesting the RBA might be done with increases to the cash rate.

Analysts polled by the ASX Rate Tracker on 24 August ascribed only a 12% chance the RBA will hike at its next meeting on 5 September.

Bank of Sydney and AMP, fixtures of these term deposit wraps for the past few months, have been steadily bringing down previously market leading rates, and they are far from alone.

CommBank, Macquarie and Bank of Queensland were also among the biggest names to cut term deposit rates this week.

Bank of Sydney cuts rates by up to 50 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $1,000-$1,000,000 End of term 3.50% p.a (-0.50)
Six months $1,000-$1,000,000 End of term 3.50% p.a (-0.50)
Nine months $1,000-$1,000,000 End of term 3.75% p.a (-0.25)

Bank of Sydney seemingly raised the white flag for now, cutting term deposit rates once again to now fall well under 4% p.a.

After an initial 5 basis point cut on 21 July, Bank of Sydney has now slashed rates on its previously market leading six month term deposit product by 150 basis points.

The six-month term peaked at 5.50% p.a. in mid-July.

BOQ cuts rates by 10 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $5,000-$250,000 End of term 4.70% p.a (-0.10)
Nine months $5,000-$250,000 End of term 4.80% p.a (-0.10)
One year $5,000-$250,000 End of term 4.90% p.a (-0.10)

Band of Queensland is the latest outfit to drop rates below 5% p.a with 10 basis point decreases.

These products are also available with monthly interest payments at another 10 basis point discount.

However, BOQ continue to offer an upper rate of 5.50% p.a on its youth saver savings account, with no sign of reduced rates as of yet.

Firstmac/Goldfields Money cut rates by 10 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $5,000-$5,000,000 End of term 4.90% p.a (-0.10)
Six months $5,000-$5,000,000 End of term 5.10% p.a (-0.10)
One year $5,000-$5,000,000 End of term 5.10% p.a (-0.10)
Two years $5,000-$5,000,000 End of term 4.90% p.a (-0.10)

Firstmac is another provider to have offered rates in excess of 5% in recent times.

Like the others, it has cut rates, but by a comparatively small 10 basis points.

For one year terms, a 5.10% p.a return is still among the highest available in Australia at the moment.

AMP cuts rates by 5 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Five months $25,000-$4,999,999.99 End of term 4.95% p.a (-0.05)
Seven months $25,000-$4,999,999.99 End of term 4.95% p.a (-0.05)

AMP once again cut rates minorly, with another five basis point decrease to some of its other products following last weeks cuts on more conventional term lengths (six months, one year etc.)

AMP offers a 5.05% p.a return on one year term deposits, five basis points behind Firstmac.

There is a five basis point reduction for customers with a deposit smaller than $25,000 at AMP.

CommBank cuts rates by 5 basis points on special offer term deposits

Term length Deposit size Payment frequency Interest rate (Percentage point change)
One year $5,000-$1,999,999 Annual 4.80% p.a (-0.05)
18-23 months $5,000-$1,999,999 Annual 4.80% p.a (-0.05)

CommBank cut rates slightly this week on its special offer rates, available for existing personal or SMSF customers only.

Australia's biggest bank continues to offer rates that seem increasingly attractive considering the cuts that have happened elsewhere.

Macquarie cuts rates by 5 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $5,000-$1,000,000 End of term 4.75% p.a (-0.05)
Nine months $5,000-$1,000,000 End of term 4.80% p.a (-0.05)
One year $5,000-$1,000,000 End of term 4.90% p.a (-0.05)

Other movers

  • Arab Bank Australia cut rates by up to 60 basis points
  • Bank Australia increased rates by up to 20 basis points
  • Bank First cut rates by 5 basis points
  • Bankwest cut rates by up to 10 basis points
  • BCU cut rates by up to 45 basis points
  • Horizon increased rates by 10 basis points
  • Credit Union SA increased rates by 15 basis points
  • BankSA decreased rates on its special offer TD's by 15 basis points
  • Bank of Melbourne decreased rates on its special offer TD's by 15 basis points
  • St George decreased rates on its special offer TD's by 15 basis points

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          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 16, 2024. View disclaimer.