There is still no sign of the current wave of juicier term deposit returns coming to an end, with Heartland, Bank of Queensland and MOVE among several providers to hike this week.

It wasn't too long ago the highest rates in Australia barely exceeded 5% p.a, but now there are a range of providers offering 5.20% p.a and beyond.

TD enthusiasts are now spoiled for choice, although there are probably still those out there still holding out for even juicier rates.

For now, these were the major moves made in the week just past.

Heartland Bank hiked six month TDs 5 bps

Term length Deposit size Payment frequency Interest rate (Change)
Six months $25,000-$1,000,000* End of term 5.30% p.a (+0.05)

*Deposits start at $5,000 for existing customers. Those wishing to deposit over $1,000,000 are able, but there is a separate application process.

The bank formerly known as Challenger appears to be deadly serious in its commitment to Australian savers, now holding a market leading or joint market leading rate for six month, nine month and one year term deposits.

A minimum $25,000 deposit right now would return $662.50 upon maturity in November, while a $1,000,000 deposit (must be nice) would mean a $26,500 payday, before tax.

If you're not an existing Heartland customer and working with a more modest deposit, while six month rates at Bank of Sydney and Judo are 5 basis points lower, both allow deposits starting at $1,000.

MOVE Bank boosted rates up to 45 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three months $5,000-$2,000,000 End of term 4.90% p.a (+0.05)
Seven months $5,000-$2,000,000 End of term 5.25% p.a (+0.35)
Ten months $5,000-$2,000,000 End of term 5.25% p.a (+0.45)

MOVE Bank made waves this week, hiking seven and 10 month rates to be the market leaders for these less popular term lengths.

MOVE still offer 5.10% p.a on five month rates, which is also pretty unusual, so the strategy looks to be targeting any savers and investors who are saving for a specific date, so aren't choosing a nice round term like six months or one year.

If you're going on holiday at the end January 2025 for example, and looking for the perfect term deposit to maximise your spending money, the MOVE seven month TD could be a good fit to lock away your savings and earn interest.

While the rate is 5 basis points lower than Heartland, the extra month means the same sized deposit with MOVE would earn more.

Bank of Queensland hiked 15 bps

Term length Deposit size Payment frequency Interest rate (Change)
One year $5,000-$250,000 End of term 4.95% p.a (+0.15)
One year $5,000-$250,000 End of term 4.85% p.a (+0.15)

The biggest bank to move this week was BOQ, a 15 basis point hike taking its one year rates within spitting distance of the 5% p.a benchmark.

While this is still a fair while behind the heavy hitters like the Heartlands and the Judo Banks of this world, this rate is the highest available among any of Australia's 10 biggest banks.

ME boosted rates 15 bps

Term length Deposit size Payment frequency Interest rate (Change)
Nine months $5,000-$2,000,000 End of term 4.90% p.a (+0.05)
One year $5,000-$2,000,000 End of term 5.00% p.a (+0.15)

ME is owned by BOQ so it stands to reason its own TD rates got a rate hike treatment, too.

Other movers

  • Horizon Bank cut rates up to 20 bps
  • Greater Bank hiked up to 30 bps
  • Newcastle Permanent hiked up to 30 bps
  • AusWide varied rates up to 25 bps

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Provider

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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

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    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

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        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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