Term deposit rates continue to become sweeter for savers

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on February 16, 2022 Fact Checked
Term deposit rates continue to become sweeter for savers

Headlining a busy week of market movement for term deposits, Macquarie, Judo Bank and ME all increased while AMP cut rates.

With economists continuing to shift the goal posts on when to expect an RBA cash rate hike, banks moving ahead of the curve.

Even though term deposit rates are edging closer to the 2% mark, savers are realistically losing purchasing power every year with annual headline inflation at 3.5% and underlying inflation at 2.6%.

Judo Bank

Following on from a 65-basis point increase two weeks ago, Judo Bank on Wednesday increased term deposit rates by up to a further 27 basis points.

This increase applied to three, six, and nine-month term deposits with a minimum deposit amount of $1,000 and a maximum of $999,999.

Highlights across Judo Bank’s increases included:

  • Personal Term Deposit, payment end of term (3 months): 27 basis point increase to 1.1% p.a.
  • Personal Term Deposit, payment end of term (6 months): 18 basis point increase to 1.15% p.a.
  • Personal Term Deposit, payment end of term (9 months): 6 basis point increase to 1.05% p.a.

Bank of Queensland

Despite slashing its market-leading interest rate on youth-savings accounts recently, BOQ increased term deposit rates by up to 25 basis points across its Term Deposit Premier Investment offering.

Some notable increases included:

  • Term Deposit Premier Investment, payment monthly (9 months): 25 basis point increase to 0.35% p.a.
  • TermDeposit Premier Investment, payment monthly (24 months): 10 basis point increase to 1.00% p.a.
  • Term Deposit Premier Investment, payment monthly (36 months): 20 basis point increase to 1.10% p.a. 

    These term deposit rates are eligible for a minimum deposit of $5,000 and a maximum of $250,000.

    ME Bank

    Recording the smallest rate increase in term deposit rates, ME Bank applied these changes to term deposit rates of up to 60 months.

    Highlights of ME Bank’s term deposit rate increase, included:

    • Term Deposit, payment monthly (24 months): 10 basis point increase to 1.15% p.a.
    • Term Deposit, payment monthly (36 months): 10 basis point increase to 1.35% p.a.
    • Term Deposit, payment monthly (48 months): 10 basis point increase to 1.45% p.a.

    AMP

    On Monday, AMP cut term deposit rates with a minimum $5,000 deposit by up to 55 basis points.

    This comes as AMP recently boosted its savings account, now with an interest rate of up to 1.35% p.a for balances up to $250,000.

    Notable cuts to AMP’s term deposit offerings with a minimum deposit of $5,000 to $24,999 included:

    • Term Deposit, payment at end of term (3 months): 45 basis point decrease to 0.30% p.a.
    • Term Deposit, payment at end of term (5 months): 55 basis point decrease to 0.35% p.a.

    For minimum deposits of $2,500 to $99,999, AMP’s cuts included:

    • Term Deposit, payment at end of term (3 months): 45 basis point decrease to 0.30% p.a.
    • Term Deposit, payment at end of term (5 months): 55 basis point decrease to 0.40% p.a.

    Cuts to minimum deposits of $100,000 or more included:

    • Term Deposit, payment at end of term (3 months): 45 basis point decrease to 0.35% p.a.
    • Term Deposit, payment at end of term (5 months): 55 basis point decrease to 0.40% p.a.
    • Term Deposit, payment at end of term (7months): 55 basis point decrease to 0.40% p.a.

    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. 

    Lender

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

    Term Deposit - 6 months

      Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

      Personal Term Deposit - 6 months (Annually)

        At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details

        Term Deposit - 6 months ($10k-$250k)

          Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

          Edvest Term Deposit I20 ($1000-$499999) - 6 months

            Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

            Term Deposit I10 ($1000-$499999) - 6 months

              Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]250000$product[$field["value"]]$product[$field["value"]]More details

              Term Deposit ($250k+) - 6 Months

                Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

                Term Deposit (> $1000) - 6 months

                  Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details
                  FLEXIBLE INTEREST AND REPAYMENT TERMS
                  • Interest can be paid to other institution
                  • Automatic maturity rollover
                  • Early Withdrawal Available
                  FLEXIBLE INTEREST AND REPAYMENT TERMS

                  Term Deposit (<$1m) - 6 months

                  • Interest can be paid to other institution
                  • Automatic maturity rollover
                  • Early Withdrawal Available

                  Rates based on a $50,000 deposit for 6 months. Rates correct as of June 29, 2022. View disclaimer.


                  Image by Sharon McCutcheon via Unsplash

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                  Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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