Term deposit rates continue to climb above 2%

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on April 08, 2022 Fact Checked
Term deposit rates continue to climb above 2%

Macquarie Bank, Citi, Firstmac, and ME Bank followed the ongoing trend of increasing term deposit rates this week.

The term deposit rate hikes come off the back of the recent RBA decision to hold the cash rate at 0.10% for April.

As it stands currently, three of the big four expect the first cash rate hike to come in June, while Westpac still predicts the first hike to come in August.

Fixed interest rates have generally been rising across the board for both fixed-rate home loans as well as term deposits.

However, variable rates have been falling which generally affects savings accounts and variable home loans.

But the tides may be changing for savers as Bank of Queensland (BOQ) recently announced its 2% p.a. savings account for 14 to 35 year olds.

Digital lender 86 400 also rejigged its savings account offering this week, now allowing customers to have up to 10 savings accounts with a bonus variable rate of 1.20% p.a.

Macquarie Bank lifts interest rate to 1.85% p.a.

Macquarie Bank increased its term deposit interest rates by up to 20 basis points across a few of its offerings.

  • 3 months, end of term payment: 10 basis point hike to 0.80% p.a.
  • 6 months, end of term payment: 10 basis point hike to 1.1% p.a.
  • 9 months, end of term payment: 20 basis point hike to 1.4% p.a.
  • 1-year, annual payment: 20 basis point hike to 1.85% p.a.

Firstmac term deposit rate pushes past 2% p.a.

Firstmac hiked its term deposit rates by up to 140 basis points.

  • 12 months, end of term payment: 45 basis point increase to 1.25% p.a.
  • 24 months, end of term payment: 140 basis point increase to 2.20% p.a.

ME Bank's interest rates exceed 1% p.a.

ME Bank increased both its business and personal term deposit rates by up to 20 basis points, with a number of its products now sitting at over 1% p.a.

  • Business term deposit, 12 to 18 months, end of term payment: 20 basis point hike to 1.10% p.a.
  • Personal term deposit, 12 to 18 months, end of term payment: 20 basis point hike to 1.10% p.a.
  • Personal term deposit, 12 to 18 months, monthly payment: 20 basis point hike to 1.05% p.a.

Citi increases interest rates on 11 term deposits

Citi hiked its term deposits by 25 basis points on 11 of its products, all of which now have an interest rate of 0.65% p.a.

  • 3 months, end of term payment: 25 basis point hike to 0.65% p.a.
  • 6 months, end of term payment: 25 basis point hike to 0.65% p.a.
  • 9 months, end of term payment: 25 basis point hike to 0.65% p.a.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.


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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

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$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details

    Term Deposit - 6 months

      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 May 26, 2022. View disclaimer.


                Image by Morgan Housel on Unsplash

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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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