The TD market continues to gather momentum, with Judo joining the party this week with a fresh set of rates up to 5.25% p.a.

Heartland Bank is still out in front with 5.35% p.a on one year term deposits, with Judo joining the likes of Bank of Sydney, G&C Mutual and Great Southern Bank as domestiques.

After taking six and nine month terms to 5.25% p.a last week, Bank of Sydney also boosted one year terms to the same rate this time around.

Coming after last week, these hikes are enough to make term deposit fans giddy with excitement, but as we've seen so far this year, sentiment can turn around just as quickly.

For anyone watching the data and trying to anticipate the next move of the RBA, the Wage Price Index for Q1 dropped this week, with wage growth below the expectations of both markets and the Reserve Bank.

Unemployment also crept up, returning above 4%, which is another result that points to inflation moderating in the coming months.

The more risk averse among Aussies interested in a term deposit might decide the time has come to pull the trigger, while the gamblers might hold out for a while longer to see what the coming weeks have in store.

Bank of Sydney varies rates up to 45 bps

Term length Deposit size Payment frequency Interest rate (Change)
Seven months $1,000-$1,000,000 End of term 4.50% p.a (-0.45)
Ten months $1,000-$1,000,000 End of term 4.50% p.a (-0.30)
One year $1,000-$1,000,000 End of term 5.25% p.a (+0.20)
One year $1,000-$1,000,000 Monthly 5.25% p.a (+0.30)

After boosting six and nine month terms last week, Bank of Sydney fired again this time around, taking one year terms to also reach 5.25% p.a.

The most exciting part is that this rate also applies for customers who receive monthly interest payments, which is highly unusual.

The vast majority of providers have discounted rates in exchange for more frequent interest payments; at Heartland Bank, one year terms with monthly payments pays 5.20% p.a, making this Bank of Sydney product technically a new market leader.

Customers who deposit $100,000 with Bank of Sydney right now can expect to receive $437.50 each month in interest.

Judo hikes up to 15 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three months $1,000-$999,999 End of term 5.00% p.a (+0.10)
Six months $1,000-$999,999 End of term 5.25% p.a (+0.15)
Nine months $1,000-$999,999 End of term 5.25% p.a (+0.15)
One year $1,000-$999,999 End of term 5.25% p.a (+0.15)
Two years $1,000-$999,999 End of term 5.20% p.a (+0.10)

Not wanting to be left behind, Judo also hit 5.25% p.a this week, for six months, nine months and one year.

It's a good opportunity to give Judo a bit of recognition for consistency over the past 18 months: while its rates have fluctuated with the market, the neobank has been one of the only constants among the highest term deposit rates in Australia.

For six and nine months, Judo now offers a joint market leading rate, alongside the likes of Bank of Sydney and Heartland, while it remains 10 basis points behind Heartland for one year.

On 18 May it's also boosting the maximum deposit to $2 million.

Macquarie boosts rates up to 10 bps

Term length Deposit size Payment frequency Interest rate (Change)
Four months $5,000-$1,000,000 End of term 4.80% p.a (+0.05)
Six months $5,000-$1,000,000 End of term 4.80% p.a (+0.10)

Other movers

  • BCU Bank increased rates up to 110 bps
  • Community First boosted rates 10 bps
  • MyState Bank varied rates up to 150 bps
  • Summerland Bank hiked rates up to 80 bps
  • Gateway Bank boosted rates up to 210 bps

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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

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      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 June 19, 2024. View disclaimer.

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