In case you missed it, interest rates are up another 25 basis points.

The last few weeks have been relatively uneventful in the term deposit space, as banks waited to see the direction the RBA would take for May's monetary policy decision.

Some providers even started moving rates down, particularly longer terms (one year or longer), in anticipation that the cash rate would begin to decrease before too long.

With the cash rate will be raised for the eleventh time in twelve RBA meetings, it's likely that more banks will follow those who moved interest rates on term deposit accounts this week.

With the ACCC watching closely to make sure cash rate movements are passed on in full to savings accounts as well as home loans, hiking up term deposit rates could be a good opportunity for banks to demonstrate commitment to savers.


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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 six-month term.

Provider

At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • Guaranteed rate of return
  • Manage your term deposit online
  • Choose your own term - Options range from one month to five years

Term Deposit - 6 months

  • Guaranteed rate of return
  • Manage your term deposit online
  • Choose your own term - Options range from one month to five years
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 24, 2024. View disclaimer.

          Judo Bank increase rates by up to 20 basis points

          Term length Deposit size Payment frequency Interest rate (% point change)
          Three months $1,000-$999,999 End of term 4.25% p.a (+0.15)
          Six months $1,000-$999,999 End of term 4.60% p.a (+0.1)
          Nine months $1,000-$999,999 End of term 4.65% p.a (+0.15)
          One year $1,000-$999,999 End of term 4.75% p.a (+0.1)

          If you keep up to date with every one of these term deposit wraps (bless you), you'll have noticed fierce competition between several banks to offer the highest rate for six month and term deposit account.

          Seemingly every week the likes of Macquarie or Beyond Bank would leapfrog one another to offer higher and higher rates, which savers would have relished.

          This week, it's Judo Bank, one of the other usual suspects, which pushed up rates to market leading levels, eclipsing Bank of Sydney which previously held the market leading spot for both six months and one year, according to Savings.com.au market research.

          Bank of Sydney reduce rates by 5 basis points

          Term length Deposit size Payment frequency Interest rate (% point change)
          Six months $1,000-$500,000 End of term 4.50% p.a (-0.05)
          Nine months $1,000-$500,000 End of term 4.55% p.a (-0.05)
          One year $1,000-$500,000 End of term 4.65% p.a (-0.05)

          Bank of Sydney, which notably hiked up rates dramatically during April, has now slightly adjusted interest rates on term deposit products downwards, passing Judo going the other way.

          The bank fired both barrels earlier in April, increasing rates in consecutive weeks to soar to the top of the term deposit arena.

          Now though, in what seems like an amendment more than anything else, Bank of Sydney has slightly tempered rates.

          It remains distinctly competitive, however.

          Macquarie increases rates by up to 25 basis points

          Term length Deposit size Payment frequency Interest rate (% point change)
          Six months $5,000-$1,000,000 End of term 4.35% p.a (+0.25)
          Nine months $5,000-$1,000,000 End of term 4.35% p.a (+0.25)
          One year $5,000-$1,000,000 End of term 4.40% p.a (+0.10)

          The largest bank to make moves this week was Macquarie, which has also been involved to some extent in the race to offer the highest interest rates.

          In a fairly standard decision, Macquarie has elected to pass on the full cash rate increase to customers putting money away for six or nine months, though term deposit decisions are usually influenced by much more than just the cash rate.

          One year terms only increased by 10 basis points, which is in tune with a broader pattern of banks 'front loading' and offering relatively higher rates on shorter terms.

          Bank Australia increases rates by up to 60 basis points

          Term length Deposit size Payment frequency Interest rate (% point change)
          Three months $5,000-$1,000,000 End of term 4.20% p.a (+0.6)
          Six months $5,000-$1,000,000 End of term 4.50% p.a (+0.35)
          Six months $5,000-$1,000,000 Monthly 4.40% p.a (+0.10)

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          Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

          Provider

          4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
          • Bonus rate for the first 4 months from account opening
          • No account keeping fees
          • No minimum balance

          High Interest Savings Account (< $250k)

          • Bonus rate for the first 4 months from account opening
          • No account keeping fees
          • No minimum balance
          010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
          • Earn up to 5.40% pa by depositing $1,000 in the previous month
          • No account fees
          • Easy access to your money

          Saver Account (<$250k)

          • Earn up to 5.40% pa by depositing $1,000 in the previous month
          • No account fees
          • Easy access to your money
          4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
          • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
          • No withdrawal notice periods or interest rate penalties
          • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace

          Savings Account (Amounts < $250k)

          • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
          • No withdrawal notice periods or interest rate penalties
          • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
          02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
          • Download the App to open your account
          • No monthly fees on any of your Save accounts
          • Deposit $200 per month to activate bonus interest

          Save Account

          • Download the App to open your account
          • No monthly fees on any of your Save accounts
          • Deposit $200 per month to activate bonus interest
          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 24, 2024. View disclaimer.

          Picture by Joshua Jamias on Unsplash