The economic outlook hasn't changed much, with most analysts believing the cash rate has peaked, and will start to go down before too long, which likely influenced Bendigo and the other banks that cut term deposit rates this week.

All may not be lost for Australians craving strong term deposit returns though, with several banks going against the grain and hiking up rates.

G&C Mutual and Bank Australia made big moves last week, moving rates for some products above 5%, and this week saw Bank of Sydney and Qudos Bank do the same.

Bendigo Bank cuts rates by up to 40 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Two months $5,000-$5,000,000 End of term 1.50% p.a (-0.40)
Four months $5,000-$5,000,000 End of term 4.10% p.a (-0.20)
One year $5,000-$5,000,000 End of term 4.75% p.a (-0.15)

Throughout the past few months, there have been several banks, including AMP, Bank of Sydney and Judo, who regularly pop in in these term deposit wraps, moving rates on an almost weekly basis.

The other side of that coin are banks like Bendigo that move rates much more infrequently, seemingly more of a set and forget attitude.

After a rare hike in August, one year term deposit products returned 4.90% p.a at Bendigo, not as strong as some others, but it maintained that rate until this week, cutting it back by 15 basis points.

Bank of Sydney increases rates by up to 125 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $1,000-$1,000,000 End of term 4.75% p.a (+1.25)
Six months $1,000-$1,000,000 End of term 4.50% p.a (+1.00)
Nine months $1,000-$1,000,000 End of term 4.90% p.a (+1.15)
One year $1,000-$1,000,000 End of term 5.00% p.a (+0.70)

From one extreme to the other, Bank of Sydney is back again with some huge increases to term deposit rates.

Bank of Sydney hit a top rate of 5.50% p.a in July, which was followed by seven consecutive weeks of rate cuts, slashing returns on some products by more than 200 basis points.

A 5% p.a return on one year products is still behind the likes of G&C Mutual and Bank Australia, but savers looking for an opportune time to lock funds away with a TD will likely be encouraged by the dramatic turnaround.

Qudos Bank increases rates by 55 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
One year $5,000-$9,999.99 End of term 5.20% p.a (+0.55)
One year $10,000-$99,999,999.99 End of term 5.20% p.a (+0.55)
One year $5,000-$9,999.99 Monthly 5.20% p.a (+0.55)
One year $10,000-$99,999,999.99 Monthly 5.20% p.a (+0.55)

In a uniform increase, Qudos hiked up its one year term deposit rates to 5.20% p.a to sit among the market leaders.

The customer owned bank is unusual in that it doesn't differentiate between differing deposit sizes, or payment frequencies.

Qudos also offers three month (4.15% p.a), six month (4.50% p.a), nine month (4.55% p.a), two year (4.65% p.a), and three year terms (4.65% p.a).

Other movers

  • Australian Unity cuts rates by up to 35 basis points
  • Arab Bank Australia cuts rates by up to 50 basis points
  • RaboBank increased rates by up to 15 basis points
  • Australian Military Bank cuts rates by up to 50 basis points
  • Credit Union SA cuts rates by up to 115 basis points
  • BankFirst cuts rates by up to 25 basis points

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          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 July 22, 2024. View disclaimer.

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