All the big four banks are now forecasting there will be no change to the cash rate in the Reserve Bank of Australia’s first meeting for 2024, held over two days on 5-6 February.
National Australia Bank fell into line with its peers last week, with all four predicting interest rates will see falls during the second half of 2024.
Last week in the term deposit market, we also saw one-time market leader ING stun the market by dumping 20 basis points from one of its leading term deposit rates.
It cut its 12-month term deposit to an interest rate of 5.10% p.a.
The current market leading rate for a one-year term deposit is 5.20% p.a. being offered by Qudos Bank and G&C Mutual Bank, according to Savings.com.au market research.
Now let’s check what’s been happening around the grounds this week.
Macquarie Bank posts rare term deposit rate hike
Macquarie is the only prominent institution to notch a term deposit rate increase for the week.
It’s raised the rate on a one-year term deposit on amounts between $5,000 and $1 million by 0.05% to 4.80% p.a. paid annually.
At the same time, it's dropped its rate for a sixth-month term deposit by 0.05% to 4.75% p.a.
The Mutual Bank notches significant rates cuts
The Mutual Bank recorded among the heftiest term deposit rates drops this week, cutting some of its products by up to 30 basis points.
The highest rate it’s offering for its newly trimmed products is 5.00% p.a. for a two-year term deposit on amounts between $1,000 and $1 million, paid annually.
Judo Bank chops again
Judo Bank has also dropped its term deposit rates on a wide range of its products, including general, personal, business, and SMSF term deposits.
The bank has applied a broad 0.05% cut, taking its 3-month term deposit rates to either 4.80% or 4.90% p.a. depending on interest payment frequency (monthly or end of term).
This is the second week in a row the small challenger bank has cut term deposit rates.
Move Bank moves rates south
Move Bank has also applied a broad brush to its term deposit rates, trimming them by between 5 and 35 basis points.
After the cuts, Move Bank is now offering 4.95% p.a. for six and 12-month term deposits for amounts between $5,000 and $200,000, paid at the end of term.
Further term deposit rate falls
Rounding out the week, another smaller player Horizon Bank has cut its term deposit rates by 10 basis points.
Its 12-month term deposit rate for amounts between $1,000 and $1 million is now 4.90% p.a. paid annually, and 4.80% p.a. paid monthly.
Bank Australia is offering the same term deposit rates for monthly and annual payments, after dropping its rates by 15 basis points this week for amounts between $500 and $1 million.
Meanwhile, Queensland-based player Firstmac has also instituted a 10-basis point cut to 4.80% p.a. for 90-day term deposits for amounts between $5,000 and $500,000.
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Harry O'Sullivan
Harrison Astbury
