After CPI inflation for September came in higher than forecast, most economists are now expecting the RBA to raise the cash rate on Tuesday.

Aussies with a mortgage will be bracing for their repayments to jump, but for those looking to grow their savings, higher rates normally means higher returns on deposit products.

Some of Australia's biggest banks increased term deposit rates this week, and if the RBA do hike, others are likely to quickly follow suit.

Earlier in the year, when it also looked as though big rate hikes were forthcoming, term deposit rates hit a peak of 5.50% p.a, on Bank of Sydney's one year term product.

While the current market leading rates are still a bit behind at 5.25% p.a, which includes the same Bank of Sydney product, cuts to the cash rate aren't expected anytime soon, so term deposit rates returning to 5.50% p.a and beyond in the coming weeks/months isn't out of the question.

For now, here are the banks that moved rates this week.

CommBank vary special offer rates by up to 20 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
One year $5,000-$1,999,999 Annual 4.75% p.a (-0.05)
18/23 months $5,000-$1,999,999 Annual 4.75% p.a (-0.05)
Two years $5,000-$1,999,999 Annual 5.00% p.a (+0.20)

The special offer term deposits at CommBank are available for existing personal or Self Managed Super Fund (SMSF) customers.

Rates are significantly elevated; for example, the normal one year term deposit with annual interest payments returns 4.25% p.a.

The standout from these increases is the 20 basis point increase to the special offer two year rate, which cracks the prestigious 5% p.a mark.

This is the highest available term deposit rate at any of the big four banks, although for one year terms, CommBank still lags behind Westpac, with a special offer of 4.85% p.a on terms between one year and 23 months.

CommBank increases rates by 5 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Two years $5,000-$49,999 Annual 4.00% p.a (+0.05)
Two years $5,000-$49,999 Semi annual 3.95% p.a (+0.05)
Two years $5,000-$49,999 Monthly 3.90% p.a (+0.05)

Australia's biggest bank also raised rates on its normal term deposit products, which are open to new customers as well, with a small five basis point increase.

These products are still available for larger deposits, up to $1,999,999, but prior to this latest increase, customers depositing less than $50,000 had to cop a small rate discount, which does not exist now.

Macquarie increases rates up to 140 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $5,000-$1,000,000 End of term 4.80% p.a (+0.10)
Six months $5,000-$1,000,000 End of term 4.85% p.a (+0.15)
Nine months $5,000-$1,000,000 End of term 4.95% p.a (+0.25)
One year $5,000-$1,000,000 End of term 5.05% p.a (+0.25)
Two years $5,000-$1,000,000 Annually 5.00% p.a (+1.10)
Three/Four years $5,000-$1,000,000 Annually 5.00% p.a (+1.40)
Five years $5,000-$1,000,000 Annually 5.00% p.a (+1.35)

The most aggressive moves this week came from Macquarie, with huge increases across its range of products.

This round of hikes means Macquarie has cracked the 5% mark for one year terms and above, with the huge 100 basis point plus increases on term lengths of multiple years suggesting a change in strategy and/or expectations.

Customers who moved quickly to lock in a 5 year term deposit, at the maximum of $1,000,000, can expect to earn $250,000 in interest by the term's conclusion.

Firstmac/Goldfields money increase rates up to 15 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $5,000-$5,000,000 End of term 4.95% p.a (+0.05)
One year $5,000-$5,000,000 End of term 4.95% p.a (+0.15)

At various points during the last peak for term deposit rates, Firstmac offered market leading rates or close to for six month and one year terms.

While it still has a way to go before returning to those heights, with 5.40% p.a returns available for both products, Firstmac is on the move once again.

Both six-month and one year terms are now at 4.95% p.a, so likely to crack 5% during the next round of increases.

Other movers

  • Great Southern Bank cut rates up to 30 basis points
  • BCU cut rates by 30 basis points
  • RaboBank varied rates up to 11 basis points
  • Arab Bank Australia cut rates up to 75 basis points

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 17, 2024. View disclaimer.