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.

Provider

At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • Easy online application
  • Interest can be paid to other institutions
  • Maturity alert by email and phone

Term Deposit - 6 months

  • Easy online application
  • Interest can be paid to other institutions
  • Maturity alert by email and phone
Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

Term Deposit ($1000-$500001) - 6 months

    At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details
    • Deposits are protected up to a limit of $250,000 for each account
    • Added loyalty bonus of 0.10%

    Personal Term Deposit - 6 months

    • Deposits are protected up to a limit of $250,000 for each account
    • Added loyalty bonus of 0.10%
    At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10008$product[$field["value"]]$product[$field["value"]]More details

    Online Term Deposit - 6 months

      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 February 27, 2024. View disclaimer.