It was mostly a quiet week for term deposit rates after the RBA kept rates steady in the December monetary policy decision.

Rate hikes in February next year and beyond remain a possibility, although with GDP growth coming in weaker than forecast for the September quarter, the RBA might now be wary of over-contracting the economy and causing a recession.

However as Warren Hogan, Judo Bank's very own chief economic adviser pointed out on X, this is merely the engineered "soft landing" the RBA has been parroting for a while now.

According to the RBA rate tracker, market expectations of an increase to 4.60% in February dropped from 23% on Wednesday to 8% on Tuesday.

It's probably premature to assume this will be another downward turning point for term deposit rates, but enthusiasts will be hoping this isn't a sign of things to come in the final weeks of the year.

Judo cuts rates up to 10 bps

Term length Deposit size Payment frequency  Interest rate (Percentage point change)
9 months $1,000-$999,999 End of term 5.15% p.a (-0.05)
1-3 years $1,000-$999,999 End of term 5.25% p.a (-0.10)
3-4 years $1,000-$999,999 End of term 5.25% p.a (-0.05)

The rate cut means Judo is now back below Bank of Sydney and ING for one year terms, which both offer a maximum rate of 5.30% p.a.

It was announced this morning, two days after the GDP numbers were released, which might suggest Judo analysts now no longer expect further rate increases.

Judo remains the market leader for two, four and five years, while G&C Mutual still holds the title for three years with a 5.30% p.a return.

Bank Australia ups rates by 40 bps

Term length Deposit size Payment frequency  Interest rate (Percentage point change)
2 years $500-$1,000,000 End of term 4.90% p.a (+0.40)
3 years $500-$1,000,000 End of term 4.40% p.a (+0.40)

It wasn't all bad news this week though, with the other rate movement an increase from Bank Australia.

These rates still are well below what's on offer at Judo, although Bank Australia has a competitive rate of 5.20% p.a on one year terms.


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
Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

Term Deposit - 6 months

    At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

    Term Deposit - 6 months

      Monthly, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]50000$product[$field["value"]]$product[$field["value"]]More details

      Term Deposit ($50000+) - 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

          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 15, 2024. View disclaimer.

          Picture by Morgan Housel on Unsplash