Term deposit rates continue to climb as RBA rate decision looms

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on March 18, 2022 Fact Checked
Term deposit rates continue to climb as RBA rate decision looms

Over the past week, RACQ Bank, ME Bank, BOQ and more have raised term deposit interest rates by up to 40 basis points.

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. 

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 stevepb on Pixabay

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                author-avatar
                Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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