It was a big May for term deposit enthusiasts, with a range of fresh market leading rates hitting the Australian market in the month past.

While there were no cash rate increases, sentiment regarding the future has shifted and many analysts now don't expect rates to come down until 2025.

In addition to the TD movements this week, Rabobank also took its maximum ongoing rate on its Premium Saver account to 5.45% p.a for balances up to $250,000.

Most of this comes from the conditional bonus rate, which customers can earn by growing their balance by at least $200 in a given month.

This is below the top savings account rate at other banks like ME (5.55% p.a) and BOQ (5.50% p.a), but the maximum rate on these products is currently capped at balances up to $100,000 and $50,000 respectively.

If you've not done your digging to find where you can get the highest return on your savings (call it inertia rather than laziness), it's a pretty good time to explore, with your options looking stronger by the week.

For the TD faithful, these were the major rate hikes this week:

ING hiked up to 20 bps

Term length Deposit size Payment frequency Interest rate (Change)
Six months $10,000-$5,000,000 End of term 5.05% p.a (+0.20)
One year $10,000-$5,000,000 End of term 5.00% p.a (+0.10)
Two years $10,000-$5,000,000 End of term 4.60% p.a (+0.10)

ING hiked six month and one year TDs this week to become the largest bank in Australia offering rates in excess of 5%.

It now offers the highest TD rates of any of the top ten banks in the nation by household deposits, ahead of BOQ at 4.95% p.a on one year terms.

The ING lion still has work to do to catch up to the market leaders, with Heartland Bank at 5.30% p.a for six months and 5.35% for one year.

Gateway Bank boosts rates 5 bps

Term length Deposit size Payment frequency Interest rate (Change)
Six months $1,000-$1,000,000 End of term 5.25% p.a (+0.05)

After a minor rate boost, Gateway Bank is now just 0.05% away from Heartland for six month rates, joining the likes of Judo and Bank of Sydney at 5.25% p.a.

Like Judo and Bank of Sydney, Gateway allow deposits starting at just $1,000, with a minimum of $25,000 at Heartland ($5,000 for existing customers).

Teachers Mutual Bank and subsidiaries hike up to 20 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three months $1,000-$500,000 End of term/Monthly 4.95% p.a (+0.20)
Three months (for Edvest members) $1,000-$500,000 End of term/Monthly 5.00% p.a (+0.20)

The cluster of banks in the Teachers Mutual group hiked three month term deposits by 20 basis points this week.

This includes UniBank, Teachers Mutual, Firefighters Bank and Health Professionals Bank, all of which now offer a rate of 4.95% to those eligible to be a customer (you can probably figure out which, if any might let you join).

Those who are part of these member owned outfits might be able to become Edvest members in exchange for a membership fee, and therefore entitled to an extra 0.05% p.a rate on TDs.

The 5.00% p.a rate available for this select group is the joint highest available for three month terms (again, level with Judo and Bank of Sydney).


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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 June 19, 2024. View disclaimer.

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