In the last week before the 4 July monetary policy decision, several banks adjusted term deposit rates.

Again, there's uncertainty about the direction the RBA will go, as inflation begins to ease.

Earlier this morning, Westpac Chief Economist Bill Evans finalised his call that next Tuesday will see rates go up by 25 basis points once again.

The markets are increasingly pricing in a pause in July rather than a thirteenth rate hike, with the Aussie dollar at just $0.66 USD, which suggests investors are not anticipating interest rates in Australia to increase.

A cut doesn't seem likely any time soon though, so term deposit providers continue to jostle with one another for market share, and rates continue to climb.

Judo increases rates by up to 37 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $1,000-$999,999 End of term 5.05% p.a (+0.35)
Six months $1,000-$999,999 End of term 5.32% p.a (+0.37)
Nine months $1,000-$999,999 End of term 5.25% p.a (+0.2)
One year $1,000-$999,999 End of term 5.30% p.a (+0.25)
Two years $1,000-$999,999 Annually 5.10% p.a (+0.1)

Judo increased rates on three separate occasions this week, to now offer the highest available rates in Australia for three month, six month, nine month and one year term deposits, per Savings.com.au's market research.

The neobank has consistently been among the market leaders during the high rate period, and reaffirmed its position at the pinnacle this week.

Judo offer higher rates on six month terms than one year, which reflects expectations that interest rates will begin to head down in the long term.

Firstmac increase rates by up to 65 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $5,000-$5,000,000 End of term 5.00% p.a (+0.25)
Six months $5,000-$5,000,000 End of term 5.30% p.a (+0.4)
One year $5,000-$5,000,000 End of term 5.30% p.a (+0.3)
Two years $5,000-$5,000,000 End of term 5.00% p.a (+0.65)

Firstmac also moved this week to offer a market leading rate of 5.30% p.a for one year term deposits.

The 5.30% p.a return on six month terms would have been a market leader were it not for Judo's latest increase, announced early on Friday.

Firstmac is also one of the first providers to offer three month term deposit returns of 5% p.a, although once again, rates at Judo are slightly ahead.

ING increase rates by up to 25 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $10,000-$5,000,000 End of term 4.75% p.a (+0.15)
Six months $10,000-$5,000,000 End of term 4.95% p.a (+0.15)
Nine months $10,000-$5,000,000 End of term 4.95% p.a (+0.15)
Two years $10,000-$5,000,000 Annually 4.90% p.a (+0.25)

Last week, ING made a 65 basis point increase to three month term deposits, and hiked up rates once again this time around.

ING also offers a 5% p.a return on one year terms, but did not increase this week.

CommBank increase rates by up to 30 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
One year (Special offer) $5,000-$1,999,999 End of term 4.75% p.a (+0.2)
Thirteen months $5,000-$49,999 End of term 4.25% p.a (+0.3)
Thirteen months $50,000-$1,999,999 End of term 4.25% p.a (+0.25)
Eighteen months $5,000-$1,999,999 End of term 4.25% p.a (+0.25)

After a 20 basis point increase to its special offer one year term deposit products, Commbank now offers the highest rates available at the big four banks.

The special offer rates are available to existing personal or Self-Managed Super Fund (SMSF) customers.

Commbank economists anticipate a pause to rate increases next week.

The 5% club

  • G&C Mutual increased rates by up to 60 basis points, including a 5.10% p.a return on three year products and 5.00% p.a on 2 years.
  • The Mutual Bank increased rates by up to 75 basis points. including a one year term deposit returning 5%
  • Bank First increased rates by up to 30 basis points. and is another to now offer one year terms with a 5% return.
  • MyState also hit 5% for one year terms after a 25 basis point increase

Other movers

  • RACQ increased rates by up to 25 basis points
  • Summerland Credit Union varied rates by up to 25 basis points
  • Bankwest varied rates by up to 50 basis points

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Provider

At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
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Term Deposit - 6 months

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At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2500031$product[$field["value"]]$product[$field["value"]]More details

Term Deposit - 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

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

      SMSF TD - 6 months (at maturity)

        Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10000$product[$field["value"]]$product[$field["value"]]More details

        Term Deposit ($10k-$500k) - 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 May 26, 2024. View disclaimer.

          Picture from Commbank