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.
| Bank | Term Deposit | Interest Rate | Interest Frequency | Term | Automatic Rollover | Maturity Alert | Early Withdrawal Available | Minimum Deposit | Maximum Deposit | Notice Period to Withdraw | Account Keeping Fee | Online Application | Joint Application | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.00% p.a. | At Maturity | 6 months | $5,000 | $5,000,000 | – | – | Featured |
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5.25% p.a. | At Maturity, Annually | 7 months | $1,000 | $99,999,999 | 1 day | – | Featured |
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4.95% p.a. | At Maturity, Annually | 6 months | $5,000 | $1,000,000 | – | – |
| ||||||||||
5.00% p.a. | Annually, Semi-Annually, At Maturity, Monthly | 6 months | $5,000 | $99,999,999 | – | – | |||||||||||
5.00% p.a. | At Maturity | 6 months | $25,000 | $99,999 | – | – | |||||||||||
4.90% p.a. | At Maturity, Annually | 6 months | $5,000 | $2,000,000 | 31 days | – | |||||||||||
4.90% p.a. | Annually, At Maturity | 6 months | $5,000 | $999,999 | 31 days | – | |||||||||||
4.90% p.a. | Annually, At Maturity | 6 months | $250,000 | $1,000,000 | 31 days | – | |||||||||||
4.85% p.a. | At Maturity, Annually | 6 months | $1,000 | $1,000,000 | 31 days | – | |||||||||||
4.85% p.a. | Annually, At Maturity | 6 months | $1,000 | $2,000,000 | 31 days | – | |||||||||||
4.85% p.a. | Annually, At Maturity, Monthly | 6 months | $10,000 | $99,999,999 | 31 days | – | |||||||||||
4.85% p.a. | Annually, At Maturity | 6 months | $10,000 | $5,000,000 | 31 days | – |
Image by Sharon McCutcheon via Unsplash
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