Which banks lifted term deposit rates this week?

This comes despite Australia’s fifth-largest bank - Macquarie Bank - throwing down the challenge to close the gap on Judo Bank’s new one-year deposit rate.

Overall it was a big week for mutual banks in the term deposit space, with the likes of People’s Choice, RACQ Bank, Australian Military Bank and MOVE Bank all increasing deposit rates.  

The rise in competitiveness in the term deposit market with banks offering average interest rates not seen since 2015, has prompted more Aussies to look to lock their savings away in the short-term. 

ABS quarterly Household Wealth data released Thursday revealed to December 2022, household deposits grew by $32.3 billion, with a record $623.3 billion now invested in non-transferable deposit accounts such as fixed-term deposits and savings accounts.

Judo Bank increases term deposits by 0.10% 

Judo Bank has overtaken Bank First to once more become the market-leader in the one-year term deposit space, offering a rate of 4.60% p.a. with interest paid at the end of term.

Judo Bank also made the move to its six-month term deposit rate, surpassing Bank First with a new rate of 4.35% p.a. with interest paid at the end of term.

To receive this rate, customers are required to deposit a minimum of $1,000. 

Macquarie Bank increases term deposits by up to 0.10%

Macquarie Bank is not far off Judo Bank’s pace, lifting its one-year rate to 4.50% p.a. with interest paid annually. 

In the six-month space, Macquarie Bank lifted its rate by 5 basis points to now offer a rate of 4.25% p.a. with interest paid at the end of term.

To receive these rates, customers are required to deposit a minimum of $5,000.

Bank of Queensland increases four-month deposit by 2.75% 

Making the most significant move in the past week was BOQ, lifting its four-month rate by a hefty 275 basis points to now offer a rate of 4.00% p.a. 

To receive this rate, customers are required to deposit a minimum of $5,000 with interest paid at the end of term. 

People’s Choice increases term deposits by up to 1.05%

The Adelaide-based credit union increased a range of term deposits in the past week by up to 105 basis points, with its most significant increases applying to both six-month and one-year deposit rates. 

In the six-month space, People’s Choice lifted rates by 105 basis points to offer a rate of 3.90% p.a. with interest paid at the end of term. 

For those looking to store cash away for a year, People’s Choice increase of 30 basis points now offers a one-year rate of 4.50% p.a. with interest paid annually. 

Across both deposits, customers are required to deposit a minimum of $5,000.

RACQ Bank increases term deposits by up to 0.60%

RACQ Bank increased term deposits in the past week by up to 60 basis points to offer a six-month rate of 3.85% p.a. and a one-year rate of 4.35% p.a. 

Both deposits require a minimum deposit of $1,000, with interest paid at the end of term and annually. 

Bank of Sydney increases six-month deposit by 0.13% 

Bank of Sydney increased its six-month term deposit this week by 13 basis points, only two basis points (0.02) short of surpassing Judo Bank’s rate of 4.35% p.a. 

The six-month rate offered by Bank of Sydney sits at 4.33% p.a. with customers requiring a minimum deposit of $1,000 with interest paid at the end of term. 

MOVE Bank increases term deposits by up to 1.30% 

MOVE Bank increased term deposits in the past week by up to 130 basis points, with its most significant increase applying to its three-month deposit rate. 

MOVE Bank’s three-month deposit rate increased to offer a rate of 3.80% p.a. with interest paid at the end of term. 

Across the six-month deposit space, MOVE Bank increased its rate by 50 basis points to 4.05% p.a. with interest paid at the end of term.

Both deposit products require a minimum deposit of $5,000 to achieve these rates.

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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 12-month term. 

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