As of 30 November, market expectations were that the chances of rates going up again next Tuesday was just 2%.
Further hikes in 2024 remain very much on the table though, and the Christmas period could still see providers jostling for position even if the cash rate stays at 4.35%.
In July, when the cash rate was still 4.10%, Bank of Sydney peaked at 5.50% p.a for one year terms, so term deposit fans shouldn't look away anytime soon.
Judo boosts rates up to 10 bps
| Term length | Deposit size | Payment frequency | Interest rate (Percentage point change) |
| 3 months | $1,000-$999,999 | End of term | 4.90% p.a (+0.10) |
| 9 months | $1,000-$999,999 | End of term | 5.20% p.a (+0.05) |
| 1 year | $1,000-$999,999 | End of term | 5.35% p.a (+0.05) |
| 2/3 years | $1,000-$999,999 | End of term | 5.35% p.a (+0.05) |
Like Ronda Rousey in her prime, Judo Bank has found a way back on top, pushing five basis points above Bank of Sydney and ING for one year terms (both 5.30% p.a).
The 5.35% p.a rate is also available for two or three year terms, which could be particularly lucrative if, as anticipated, inflation declines to between 3-4% by the end of 2024.
Depositing $100,000 into a three year term deposit with Judo would yield a $16,050 interest payment once the term is up, subject to income tax.
For people with more than $1,000,000 to throw into a term deposit (relatable content as ever), Judo cap deposits at $999,999, so the likes of ING, with a much larger cap, might be a better bet.
However deposits are only covered up to $250,000 per account per account holder under the government's financial claims scheme.
Suncorp rates increased by up to 40 bps
| Term length | Deposit size | Payment frequency | Interest rate (Percentage point change) |
| 4 months | $100,000-$999,999 | End of term | 4.45% p.a (+0.10) |
| 7 months | $100,000-$999,999 | End of term | 4.90% p.a (+0.10) |
| 10 months | $100,000-$999,999 | End of term | 3.90% p.a (+0.40) |
Suncorp also boosted term deposit returns this week, hiking rates by up to 0.40%.
The above rates are for the middle deposit size, but Suncorp customers can also deposit under $100,000 (minimum of $5,000) for a 5 basis point discount, or north of $1,000,000 to earn an extra 5 basis points.
These products are also available with lower rates for more frequent interest payments.
The most interesting thing about Suncorp's term deposit products is that seven month terms have returns more than 100 basis points higher than the traditionally more popular six month term.
It isn't a case of the longer the better either; after one year terms, seven months has the highest available rate, so it might be someone at Suncorp's lucky number or part of some clever strategy.
Credit Union SA increases rates up to 110 bps
| Term length | Deposit size | Payment frequency | Interest rate (Percentage point change) |
| Three months | $5,000-$99,999,999 | End of term | 5.10% p.a (+1.10) |
| One year | $5,000-$99,999,999 | End of term | 5.00% p.a (+0.10) |
Credit Union SA cracked 5% p.a for one year terms this week, but more notable was the 110bps increase to three month term deposits.
According to Savings.com.au market research, 5.10% p.a is the highest available rate in the country for three year terms.
It's important though to remember this is still a per annum (yearly) rate, so it doesn't mean you'll get a 5% return on your money at the end of the three months.
Other movers
- Heritage Bank increased rates up to 25 bps
- People's Choice hiked rates up to 25 bps
- Australian Military Bank increased Income Plus rates up to 20 bps, and Investment plus by 10 bps.
- BankVic varied rates up to 75 bps
- Newcastle Permanent cut rates (!) by 45 bps
- Horizon Bank boosted returns up to 50 bps.
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.
- Easy online application
- Interest can be paid to other institutions
- Maturity alert by email and phone
Picture bu Joshua Jamias on Unsplash
Harry O'Sullivan
William Jolly
Staff Writers
