Term deposit rates continue to climb as RBA rate decision looms

Term deposits are continuing to climb over the 1% p.a. mark as the RBA hints at a rate hike this year.

This is in line with the ongoing trend of fixed rates rising while variable rates are falling as seen with recent home loan activity.

Another example of this trend can be seen in the savings account realm, such as BOQ and Westpac slashing their youth savings account interest rates by 50 basis points each last month.

With some context out of the way, let's get into the term deposit rate movement over the past week.

RACQ Bank increases term deposits by up to 40 basis points

RACQ Bank has varied its term deposit rates, increasing a number by up to 40 basis points but also decreasing a few by up to 10 basis points.

Term deposits that saw cuts were short-term, while long-term ones saw rates increase.

Notable movement included:

• Term Deposit (2-year term, payment annually): 40 basis point increase to 1.10% p.a.
• Term Deposit (3-year term, payment annually): 40 basis point increase to 1.20% p.a.
• Term Deposit (4-year term, payment annually): 40 basis point increase to 1.30% p.a.
• Term Deposit (5-year term, payment annually): 40 basis point increase to 1.40% p.a.

ME Bank increases term deposits by up to 30 basis points

ME Bank increased a number of business and personal term deposit rates - all of which are relatively short-term - but interest rates all sit below 1% p.a.

Notable movement included:

• Term Deposit (12 to 18 months, payment at end of term): 20 basis point increase to 0.90% p.a.
• Term Deposit (18 to 24 months, payment monthly): 30 basis point increase to 0.95% p.a.
• Term Deposit (12 to 18 months, payment monthly): 20 basis point increase to 0.85% p.a.
• Business Term Deposit (18 to 24 months, payment monthly): 30 basis point increase to 0.95% p.a.

Macquarie Bank term deposits over 1.55% p.a.

Macquarie raised its term deposit rates by up to 20 basis points.

A number of its term deposits boast interest rates over 1% p.a., including:

• Term Deposit (1-year term, payment annually) 20 basis point increase to 1.2% p.a.
• Term Deposit (2-year term, payment annually): 20 basis point increase to 1.45% p.a.
• Term Deposit (3-year term, payment annually): 20 basis point increase to 1.55% p.a.
• Term Deposit (4-year term, payment annually): 20 basis point increase to 1.55% p.a.

BOQ raises rates by up to 20 basis points

BOQ also increased four of its term deposit interest rates by up to 20 basis points.

Notable movement included:

• Term Deposit Premier Investment (7 to 8 months, payment at end of term): 20 basis point increase to 0.40% p.a.
• Term Deposit Premier Investment (12 to 24 months, payment at end of term): 10 basis point increase to 0.70% p.a.
• Term Deposit Premier Investment (12 to 24 months, payment monthly) 10 basis point increase to 0.60% p.a.

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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. 

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