After a relatively quiet few weeks in the term deposit market, Heartland made a big statement to close out spring with these latest hikes.
Interestingly, both Heartland and RaboBank decided to boost longer term rates (nine months or more), despite most analysts expecting the RBA to have began a rate cutting cycle by winter 2025.
Elsewhere, activity remains mostly subdued, although several smaller providers also tweaked rates this week.
Over the coming months, the TD market will likely vary amid a changing outlook for the cash rate.
Westpac and NAB economists both expect rates will remain at 4.35% until May next year, while CommBank and ANZ still say February is the likeliest start date for the loosening cycle.
The final monetary policy meeting of 2024 appears to be a foregone conclusion – the ASX RBA Rate Tracker suggests a 94% likelihood the central bank will hold as at 27 November.
These were the major term deposit rate changes in the week ending 29 November.
Heartland Bank hike rates by up to 10 bps
| Term length | Deposit size | Payment frequency | New rate (Change) |
|---|---|---|---|
| Three months | $25,000-$1,000,000 | End of term | 4.95% p.a. (+0.10) |
| Six months | $25,000-$1,000,000 | End of term | 5.09% p.a. (+0.05) |
| Nine months | $25,000-$1,000,000 | End of term | 5.15% p.a. (+0.05) |
| One year | $25,000-$1,000,000 | End of term | 5.10% p.a. (+0.05) |
| Two years | $25,000-$1,000,000 | End of term | 4.70% p.a. (+0.10) |
Heartland's new nine month rate – 5.15% p.a. – is the joint highest TD rate available on the whole market.
Only Judo, with the same return on six month terms, can match it.
Additionally, Heartland Bank is now the market leader for nine month and one year terms, offering 5.15% p.a. and 5.10% p.a. respectively.
Read more: Heartland Bank announce market leading TD rates
Rabobank hiked by up to 0.20%
| Term length | Deposit size | Payment frequency | New rate (Change) |
|---|---|---|---|
| Nine months | $1,000-$2,000,000 | End of term | 4.80% p.a (+0.10) |
| One year | $1,000-$2,000,000 | End of term | 4.75% p.a (+0.20) |
| Two years | $1,000-$2,000,000 | End of term | 4.20% p.a (+0.20) |
Rabobank also boosted longer term TD rates this week, with hikes of up to 20 bps on terms of nine months and longer.
These rates remain well below those offered by the likes of Heartland and Judo, but Rabobank has some appealing returns for savers elsewhere.
Its High Interest savings account currently has an introductory rate of 5.60% p.a. for the first four months, while its Premium Saver has a maximum (conditional) ongoing rate of 5.35% p.a.
AMP hiked by up to 20 bps
| Term length | Deposit size | Payment frequency | New rate (Change) |
|---|---|---|---|
| Three months | $25,000-$10,000,000 | End of term | 4.90% p.a (+0.20) |
| Six months | $25,000-$10,000,000 | End of term | 4.95% p.a (+0.05) |
| Nine months | $25,000-$10,000,000 | End of term | 4.85% p.a. (+0.05) |
These products are also available for deposits smaller than $25,000 - albeit for a 0.05% discount.
Other movers
- Australian Military Bank cut rates by up to 10 bps
- Illawarra Credit Union boosted three, four, and five month TD rates by up to 30 bps
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Looking for a fixed income investment? Below are some of the top term deposits available on the Australian market
| Bank | Term Deposit | Interest Rate | Interest Frequency | Term | Automatic Rollover | Maturity Alert | Early Withdrawal Available | Minimum Deposit | Maximum Deposit | Notice Period to Withdraw | Account Keeping Fee | Online Application | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.35% p.a. | At Maturity | 6 months | $5,000 | $19,999 | – | – | |||||||||||||
5.20% p.a. | At Maturity | 6 months | $10,000 | $5,000,000 | – | – | |||||||||||||
5.15% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – |
