It was a relatively quiet week for term deposit rates, with many banks seemingly adopting a 'wait and see' approach about the future of interest rates.
November's monetary policy decision has been called the most 'live' for several months, and will depend on data like yesterday's unemployment figures, and Q3 CPI inflation which will be released next week.
There were no dramatic rate changes this week, but it's interesting to see the different approaches banks are taking, with rates moved both up and down.
ANZ cut rates on Advance Notice accounts by 5 basis points
| Term length | Deposit size | Payment frequency | Interest rate (Percentage point change) |
| 12/24 months | $5,000-$99,999 | Annually | 4.75% p.a (-0.05) |
| 12/24 months | $5,000-$99,999 | Semi annually | 4.69% p.a (-0.05) |
| 12/24 months | $5,000-$99,999 | Quarterly | 4.67% p.a (-0.05) |
| 12/24 months | $5,000-$99,999 | Monthly | 4.65% p.a (-0.05) |
ANZ was the biggest bank to move this week, cutting back rates slightly on its one to two year Advance Notice term deposits.
Advance Notice accounts have higher rates, but customers need to give 31 days notice if they intend to withdraw early, with prepayment adjustment penalties still applying.
This cut means the highest rate available at ANZ is behind both CommBank (4.80% p.a on its special offer one to two year terms) and Westpac (4.85% p.a available with its special online offer, again for 12-23 months).
Bendigo cut rates by up to 50 basis points
| Term length | Deposit size | Payment frequency | Interest rate (Percentage point change) |
| Four months | $5,000-$5,000,000 | End of term | 3.60% p.a (-0.50) |
| Six months | $5,000-$5,000,000 | End of term | 4.00% p.a (-0.20) |
| Nine months | $5,000-$5,000,000 | End of term | 4.00% p.a (-0.10) |
Bendigo was one of the other large banks to move this week, and it was also the biggest slasher of rates with cuts up to 50 basis points.
If you keep up to date with term deposit returns you'll know rates elsewhere are significantly above 4.00% p.a, so Bendigo are clearly content to not compete with the market leaders for term deposits.
Bendigo's maximum rate available on savings accounts is 5.25% p.a on its Reward Saver account, so it's there customers can look to for stronger returns.
AMP increases rates up to 30 basis points
| Term length | Deposit size | Payment frequency | Interest rate (Percentage point change) |
| Six months | $5,000-$24,999 | End of term | 4.95% p.a (+0.10) |
| Six months | $25,000-$4,999,999 | End of term | 5.00% p.a (+0.10) |
| Twelve months | $5,000-$24,999 | End of term | 5.20% p.a (+0.30) |
| Twelve months | $25,000-$4,999,999 | End of term | 5.25% p.a (+0.30) |
While most of the movement this week was downward, AMP bucked the trend, making big moves.
Twelve month term deposits at AMP now return 5.25% p.a, level with Bank of Sydney as the highest rate available in Australia for one year terms, per Savings.com.au's market research, although to get this rate your deposit will need to be $25,000 or greater.
AMP's products are available with the following discounts in exchange for more frequent interest payments.
| Semi annual payments | 5 basis point discount from above rates |
| Quarterly payments | 10 basis point discount |
| Monthly payments | 20 basis point discount |
Other movers
- Community First cut rates by 10 basis points
- Northern Inland Credit Union cut rates by 10 basis points
- The Mutual Bank cut rates up to 15 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.
- Easy online application
- Interest can be paid to other institutions
- Maturity alert by email and phone
Harry O'Sullivan
William Jolly
Jacob Cocciolone
