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

Advertisement

Looking for a fixed income investment? Below are some of the top term deposits available on the Australian market

Provider

At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details

Term Deposits ($5,000 - $500,000) - 6 months

    At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details

    Stow it Term Deposit - 6 months

      At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000$product[$field["value"]]$product[$field["value"]]More details

      Fixed Term Deposit - 6 months

        At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000$product[$field["value"]]$product[$field["value"]]More details

        Term Deposit - 6 months

          At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000$product[$field["value"]]$product[$field["value"]]More details

          Term Deposits - 6 months

            At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000$product[$field["value"]]$product[$field["value"]]More details
            • Competitive interest rates on all term lengths
            • Deposits covered up to $250,000 under Government’s Financial Claims Scheme
            • Loyalty bonus at renewal
            Disclosure

            Personal Term Deposits - 6 months

            • Competitive interest rates on all term lengths
            • Deposits covered up to $250,000 under Government’s Financial Claims Scheme
            • Loyalty bonus at renewal
            Disclosure
            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 December 6, 2024. View disclaimer.

            Important Information and Comparison Rate Warning

            Picture by Micheile Henderson on Unsplash