The banks that increased term deposit rates this week

Macquarie increases rates by up to 0.15% p.a

For the second week in a row, Macquarie raised rates on its three, six and nine month term deposit accounts.

A 15 basis point increase means the six month account breaks the 4% p.a yield threshold, while the one year term moved up 5 basis points to 4.25% p.a.

All have a minimum deposit size of $5,000.

Heritage Bank increases rates by up to 0.7% p.a

In one of this weeks biggest moves, Heritage Bank saw significant jumps of up to 70 basis points on its six month term deposit products.

For customers with an end of term interest payment, this means they will now receive a 3.60% p.a return, while for semi annual, quarterly or monthly payments, the rate becomes 3.55% p.a.

Heritage's one year products also saw rates move up this week, albeit less dramatically by just 10 basis points.

The end of term payment interest rate is now 4.10% p.a, and 4.05% for other payment frequencies.

People's Choice and Heritage are set to finalise their merger on 1 March - nearly two years in the making - which would make it the largest customer-owned bank in Australia.

RACQ Bank increases rates by up to 0.25% p.a

RACQ is another bank now offering better returns on its term deposit accounts, with rates increasing by up to 25 basis points.

Its six month term accounts saw a jump from 3.10% p.a to 3.35% p.a, while depositing for a full year will now earn customers a 4.10% p.a rate, up 10 basis points.

These products are on offer for anyone with a deposit size above $1,000.

MOVE increases rates by up to 0.9% p.a

In the single biggest rate jump this week for non business accounts, MOVE increased the return on its five month term deposit accounts by 90 basis points to now yield 3.00% p.a.

There were rate increases throughout MOVE's range of term deposit accounts, but most others were more conservative.

Its one year term account is up 20 basis points to 4.30% p.a (with an end of term payment), while those who are looking for a six month term will benefit from a 25 basis point increase to 3.55% p.a.

All of MOVE's products have a minimum deposit size of $5,000.

Illawarra Credit Union increases rates by up to 0.25% p.a

Wollongong based credit union Illawarra announced a 25 basis point increase to most of its consumer term deposit products.

This included its one year term accounts, which now return 3.5% p.a.

Illwarra also announced movements to its rates for business term deposit accounts, with its 12-month term receiving a sharp spike of 120 basis points to now sit at 3.30% p.a.

The credit union appears to have removed its 12-month 4.30% p.a. special offer to deposits of $100,000 or more.

Hume increases rates by up to 0.45% p.a

Hume Bank, a smaller NSW operation, this week announced increases to their term deposit rates by up to 45 basis points.

Hume's six month term accounts saw a 25 basis point boost to now return 2.75% p.a, while the same increase on its one year accounts means this product now yields 4% p.a.

Other movers

• On the back of last week, where it moved within 5 basis points of the highest returning one year deposit account in Australia, Judo Bank announced a 5 basis point increase to all terms of 2 or more years.
• Horizon Bank increased their term deposit accounts by up to 30 basis points, including its one year account which now returns 4% p.a
• Beyond Bank increased term deposit accounts by up to 25 basis points, as did Australian Mutual Bank.

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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. 

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Term Deposit - 6 months

Product Features

• Easy online application
• Interest can be paid to other institutions
• Maturity alert by email and phone

Minimum deposit$5,000

5.00%Interest rate p.a.

6Term

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