Australia's largest bank has boosted its highest term deposit rate to 4.20% p.a. for two years, leapfrogging its 4.00% p.a. for 12 months special offer deal launched earlier this month.
The new CBA rate applies to amounts from $5,000 to under $2 million with interest paid annually and is available online or in branch.
It's the highest rate currently on offer from the big four banks, with NAB and ANZ also having lifted their best rates to 4.00% p.a. during the past two weeks.
Westpac remains the only big bank to offer a top rate under 4.00% p.a. with a best rate of 3.90% p.a. for customers investing online for 11 months.
Earlier this month, Macquarie Bank upped its best rate to 4.10% p.a. for three-, four-, and six-month terms for amounts of $1 million and under.
Judo reclaims market's highest term deposit rate
But the market's highest rate, according to the Savings.com.au data base, is back with perennial term deposit market leader Judo Bank, which upped its top rate to 4.45% p.a. on Friday.
It's offering the rate on amounts between $1,000 and under $2 million invested for 12 months with interest paid on maturity.
It betters its previous top rate of 4.40% p.a. on an eight month investment, launched earlier this month and now adjusted lower.
Judo has also adjusted some other shorter term rates, as follows:
| Term | Rate (change %) | Amount invested | Interest paid |
| 4 months | 4.30% p.a. (+0.15) | $1,000-$2m | End of term |
| 6 months | 4.10% p.a. (+0.20) | $1,000-$2m | End of term |
| 7 months | 4.30% p.a. (-0.05) | $1,000-$2m | End of term |
| 8 months | 4.35% p.a. (-0.05) | $1,000-$2m | End of term |
| 1 year | 4.45% p.a. (+0.25) | $1,000-$2m | End of term |
Judo offers rates 0.10% p.a. lower to customers choosing monthly interest payments.
Smaller players upping rates
The term deposit market was awash with smaller deposit-takers increasing their rates this week.
Now that it's looking increasingly likely the Reserve Bank's cash rate cutting cycle is over, banks are looking to their deposits to secure a stable source of funds.
This generally coincides with them expecting increased demand for fixed-rate home loans down the track.
One standout offer comes from Community First Bank and Illawarra Credit Union, launching a limited-time special rate of 4.40% p.a. for new depositors with amounts between $10,000 and $1 million investing for eight months.
It runs alongside the current 12-month special of 4.20% p.a. under the same conditions, with both deals paying interest on maturity.
The eight-month special offer is only available until 31 December but may be pulled earlier if targets are reached.
Other term deposit rate changes
Here are some other rate changes on the term deposit market this week:
- Gateway Bank has upped its 12-month rate by 0.05% to 4.25% p.a. although its top rate remains its six-month rate of 4.30% p.a.
- Teachers Mutual (including UniBank) has lifted its term deposit rates by up to 0.25% with a top rate of 4.20% p.a. for six months
- Greater Bank has increased its 12-month rate to 4.00% p.a. for amounts between $5,000 and under $100 million
- Newcastle Permanent also changed its 12-month rate to 4.00% p.a. although its best rate remains its six-month rate of 4.15% p.a.
- Bank of Queensland has lifted its 12-23 month Premier Investment rate by 0.15% to 4.05% p.a.
- Summerland Bank has upped a range of rates by up to 0.20% this week but its best rate remains at 4.10% p.a. for balances $10,000-under $1 million invested for five months
- IMB Bank has lifted a range of rates with a top rate of 4.00% p.a. on its three-month, six-month, and 12-month specials
- People's Choice Credit Union lifted its best rate to 3.95% p.a. for a six-month term but adjusted other shorter-term rates lower
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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.
| 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 | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.35% p.a. | At Maturity | 6 months | $5,000 | $19,999 | – | – | |||||||||||||
5.20% p.a. | At Maturity | 6 months | $10,000 | $5,000,000 | – | – | |||||||||||||
5.15% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – |
