Many analysts now expect the RBA to increase the cash rate again, particularly after inflation crept back up again in April.
Some of the more prominent term deposit providers have already moved rates upwards though, the likes of ING and First Mac steadily increasing six month and one year term deposits over the past few weeks.
This week saw less activity among the major term deposit players and larger banks, but several regional providers chose this week to alter rates.
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RACQ varies rates by up to 50 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% point change) |
| Three months | $1,000-$99,999,999.99 | End of term | 4.00% p.a (+0.5) |
| Six months | $1,000-$99,999,999.99 | End of term | 4.25% p.a (+0.25) |
| Eleven months | $1,000-$99,999,999.99 | End of term | 3.50% p.a (-0.25) |
| Two years | $1,000-$99,999,999.99 | Annually | 4.20% p.a (-0.15) |
| Three-Five Years | $1,000-$99,999,999.99 | Annually | 3.95% p.a (-0.15) |
RACQ chose this week to increase rates on shorter term deposits while decreasing those on longer terms, above ten months.
A 50 basis point increase to three month terms suggests RACQ economists might be anticipating interest rates to rise in the short term.
However, 15 and 25 basis point reductions to longer terms could be an indicator that the bank expects rates to begin to ease in the medium term.
Bank First increases rates by up to 20 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% point change) |
| Three months | $500-$99,999,999.99 | End of term | 4.20% p.a (+0.2) |
| Six months | $500-$99,999,999.99 | End of term | 4.50% p.a (+0.1) |
| Nine months | $500-$99,999,999.99 | End of term | 4.55% p.a (+0.05) |
Bank First was another to increase short term deposits this week, raising rates on its range of three, six and nine month products.
Again, three month terms saw the most significant increase.
Transport Mutual Credit Union increase special offer rates by up to 25 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% point change) |
| Six months | $1,000-$99,999,999.99 | End of term | 4.70% p.a (+0.1) |
| Seven months | $1,000-$99,999,999.99 | End of term | 4.75% p.a (+0.15) |
| One year | $1,000-$99,999,999.99 | End of term | 4.85% p.a (+0.25) |
Transport Mutual has announced boosts to its range of special offer products, including an increase to one year terms that means it offers the same rate as current market leaders Firstmac/Goldfields Money.
These rates are available for new deposits only (from external bank accounts) and you'll need to complete an application form first.
Macquarie increase rates by 5 basis points
| Term length | Deposit size | Payment frequency | Interest rate (% point change) |
| Three months | $5,000-$1,000,000 | End of term | 4.40% p.a (+0.05) |
The largest bank to make moves this week was Macquarie, but you could be forgiven for missing a five basis point increase to its three month terms.
Other movers
- The Mutual varies rates by up to 80 basis points
- People's Choice varies rates by up to 50 basis points
- Credit Union SA varies rates by up to 110 basis points
- Northern Inland CU increases rates by up to 40 basis points
- Heritage varies rates by up to 50 basis points
- Macquarie Credit Union increases rates by up to 65 basis points
Harry O'Sullivan
William Jolly
Harrison Astbury
