Which banks increased term deposit rates this week?

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on June 24, 2022 Fact Checked
Which banks increased term deposit rates this week?

In a busy week of term deposit rate activity, Judo Bank and customer-owned institutions such as Great Southern Bank and Teachers Mutual led the charge.

It's been a busy period for deposit rate activity, with a number of savings account rates also getting a boost. 

However, the money seems to be on term deposits with banks preferring to lock-away customers for a set period.

That said, a statement by the Council of Financial Regulators (APRA, ASIC, RBA, Federal Treasury) released yesterday said banks have been reticent to pass on interest rate hikes in full to savings products.

"Participants noted that, given the cash rate remains at a low level, there has been much less pass-through to deposit interest rates than to lending interest rates so far. It was agreed to continue to monitor pass-through closely," the statement read.

It's important to note the major banks in CBA, NAB, ANZ and Westpac have largely increased their 12-month term deposit rates to 2.25% p.a.

Judo Bank term deposit rate increase

Judo Bank focused on products with longer terms.

For example, the five-year rate was bumped by 40 basis points to 4.25% p.a. with interest payable at end of term.

Minimum deposit is $1,000.

Other rates were increased by between 35 and 55 basis points.

See how Judo 12 month term deposit rates stack up to other banks in the table below.

Lender

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

Personal Term Deposit - 12 months (Annually)

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

    Term Deposit - 12 months

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

      Term Deposit - 12 months ($10k-$250k)

        Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000$product[$field["value"]]$product[$field["value"]]More details

        Term Deposit ($1000-$500001) - 12 months

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

          Term Deposit (> $1000)- 12 months

            At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

            Term Deposit - 12 months

              Rates based on a $50,000 deposit for 12 months. Rates correct as of June 29, 2022. View disclaimer.


              The following institutions make up five of the top 10 largest customer owned banks in Australia, in terms of assets held.

              For the purpose of brevity, one-year or 12 month term deposit rates will be the focus here.

              Great Southern Bank term deposit rate increase

              GSB increased its 12 month term deposit rate by 20 basis points to 3.00% p.a. 

              This carries with it a minimum deposit of $5,000, with interest payable at the end of term.

              Other term deposit rates were increased by between 10 and 55 basis points.

              Teachers Mutual Bank term deposit rate increase

              Teachers Mutual increased its 12 month term deposit by 40 basis points to 1.05% p.a. 

              Minimum deposit is $5,000 and interest can be redeemed either monthly or at the end of term.

              Other products' rates were increased by between 20 and 300 (3.00%) basis points.

              Similar rate increases also apply to its subsidiaries such as UniBank and Firefighters Mutual.

              Beyond Bank term deposit rate increase

              Beyond Bank increased its 12 month term deposit rate by one percentage point (1.00% or 100 basis points) to 1.95% p.a. with interest payable at end of term.

              There is a slight (10 basis point) reduction if savers opt for interest payable monthly. 

              This carries with it a $2,000 minimum deposit.

              Other products' rates were increased by between 40 and 110 basis points.

              Heritage Bank term deposit rate increase

              Toowoomba-based Heritage increased the rate on its 12 month term deposit by 105 basis points to 2.05% p.a.

              The minimum deposit is $1,000 and interest is payable at the end of term. 

              There is a 10 basis point reduction (1.95% p.a.) if savers opt for interest payable quarterly.

              Other products' rates were increased by between 20 and 105 basis points.

              Bank Australia term deposit rate increase

              Bank Australia increased its 12 month term deposit rate by 50 basis points to 3.00% p.a.

              Minimum deposit is $500 and interest is payable at the end of term.

              Other products' rates were increased by between 30 and 150 basis points.

              Other customer-owned banks to increase term deposit rates over the past week include: Summerland Credit Union, MyState, G&C Mutual, Qudos Bank, Geelong Bank, Horizon Bank, Credit Union SA, MOVE Bank, The Mutual, and Northern Inland Credit Union.


              What about other banks?

              Citi

              Citi increased its 12 month term deposit by 50 basis points to 2.75% p.a.

              This has a minimum deposit of $10,000 and interest is payable at end of term.

              Other products' rates were increased by between 25 and 105 basis points.

              ME Bank

              ME increased its 12 month term deposit rate by 25 basis points to 3.00% p.a.

              Minimum deposit is $5,000 and interest is payable at the end of term. 

              There is a five basis point reduction if savers opt for interest payable monthly.

              Other products' rates were increased by between 25 and 105 basis points.

              Bankwest

              Bankwest increased its 12 month term deposit by 130 basis points to 2.30% p.a.

              Minimum deposit is $1,000 with interest payable at end of term.

              Other products' rates were increased by between 15 and 130 basis points, though a couple were decreased by 10 basis points.

              Bank of Sydney

              Bank of Sydney increased its 12 month rate by 50 basis points to 2.05% p.a. 

              The minimum deposit is $1,000 and interest is payable at the end of term.

              Other rates were increased by between 20 and 60 basis points.


              Photo by Dovis on Pexels

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              Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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