The cash rate will remain at 3.60% until at least December, and RBA Governor acknowledged after the decision that there may not be any more cuts for some time.
"The Board's going to have to wait and see; it's possible there's no more rate cuts, it's possible there are some more," she told media.
While that might be a despondent prospect for mortgage holders, for Australians looking to grow their savings it could mean term deposit and savings account rates are less likely to be reduced - some might even be boosted.
October marked a turnaround in the TD market, with 29 providers moving rates mostly in a positive direction, according to Savings.com.au's database.
The turnaround in November has accelerated since Tuesday's monetary policy decision with three banks revealing new returns at or near the highest levels among any products in our database.
Australian Military Bank marches by up to 40 bps
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
|---|---|---|---|
| Six months | $1,000–$250,000 | End of term | 4.40% p.a. (+0.10) |
| Six months | $1,000–$250,000 | Monthly | 4.30% p.a. (+0.10) |
| Nine months | $1,000–$250,000 | End of term | 4.25% p.a. (+0.40) |
| Nine months | $1,000–$250,000 | Monthly | 4.15% p.a. (+0.40) |
Aus Military Bank gave its six and nine month rates a major boost this week, on both its Investment Plus and Teen Plus products (these have a minimum deposit of just $500).
The 4.40% p.a. rate for six months is currently the top return of any TD product in the Savings.com.au database.
Despite the name, you don't need to be in the military to become a member - you'll just need to sign up at a branch or online.
BCU Bank hikes by up to 35 bps
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
|---|---|---|---|
| Four months | $1,000+ | End of term | 4.30% p.a. (+0.10) |
| Six months | $1,000+ | End of term | 4.35% p.a. (+0.35) |
| Nine months | $1,000+ | End of term | 3.90% p.a. (+0.10) |
| Four months | $1,000+ | Monthly | 4.20% p.a. (+0.10) |
| Six months | $1,000+ | Monthly | 4.25% p.a. (+0.35) |
| Nine months | $1,000+ | Monthly | 3.80% p.a. (+0.10) |
| Six months (55+ and not for profit) | $1,000+ | Monthly | 4.35% p.a. (+0.35) |
| Six months (55+ and not for profit) | $1,000+ | Fortnightly | 4.30% p.a. (+0.35) |
After a 35 bps increase this week, BCU Bank is also now just 0.05% behind Aus Military Bank for six month TD rates.
That top rate of 4.35% p.a. applies to standard BCU TDs for interest paid at maturity, while customers aged over 55 can enjoy that rate but with monthly interest payments - or 4.30% p.a. for fortnightly interest.
BCU also now offers the highest four month rate in our database (also 4.30% p.a.).
P&N Bank hikes by up to 20 bps
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
|---|---|---|---|
| Four months | $5,000–$1m | End of term | 4.20% p.a. (+0.10) |
| Six months | $5,000–$1m | End of term | 3.90% p.a. (+0.10) |
| Nine months | $5,000–$1m | End of term | 3.80% p.a. (+0.20) |
P&N Bank is part of the P&N Group which also operates BCU, but its new rates aren't quite as strong.
Nevertheless, 4.20% p.a. is still one of the higher four month returns in our database.
Advertisement
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 | – | – |
