Home News Term deposit rates slip further amid cash rate cut

Term deposit rates slip further amid May cash rate cut

With all eyes on the Reserve Bank of Australia this week, term deposits rates quietly continued their downward march.

First published on 23 May 2025

Term deposit rates slip further amid May cash rate cut

The main game this week was Tuesday's 25-basis point cut to the RBA cash rate - taking it to 3.85% from 4.10%.

It came as no surprise, least of all to term deposit rate setters who have been dropping rates across the market for months.

But it wasn't all knives out this week.

Judo Bank upped the rates on its four- and five-year term deposits for those who have a bit of cash they won't be needing for a while.

Let's check all this week's rate movements.

Judo cuts short, raises long

Judo's term deposit rates are generally in the mix of the best on the market but this week, rates from three months to three years took a haircut by up to 20 basis points.

Judo's new best rate is 4.45% p.a. for amounts between $1,000-$2 million deposited for six months with interest paid end of term - a 15-basis point cut on the old rate.

Here's a look at Judo's latest rate changes for personal term deposits between $1,000-$2 million:

Term	New rate (% change)	Interest paid
3 months	4.35% p.a. (-0.20)	End of term
6 months	4.45% p.a. (-0.15)	End of term
9 months	4.25% p.a. (-0.20)	End of term
1 year	4.15% p.a. (-0.15)	End of term
2 years	4.05% p.a. (-0.20)	Annually
3 years	4.05% p.a. (-0.20)	Annually
4 years	4.35% p.a. (+0.05)	Annually
5 years	4.45% p.a. (+0.10)	Annually

The rates drop by 10 basis points for those opting for monthly interest payments.

Judo has also adjusted rates for its business and SMSF term deposit products.

Bank of Sydney trims six-month rate

Bank of Sydney made just one adjustment to its rates schedule this week, shaving five basis points from its competitive six-month term deposit rate.

The new rate is 4.60% p.a. for deposit amounts between $1,000 and $1 million with interest paid end of term.

The cut leaves Gateway Bank as the market leader for six-month term deposit rates for lower deposit amounts.

It's still offering 4.65% p.a. for amounts over $1,000, according to the Savings.com.au database.

Gateway trims 3 and 12 month rates

While Gateway has left its six-month rate untouched, it has cut its three- and 12-month rates by five basis points.

Its new three-month rate is 4.50% p.a. while the 12-month rate is 4.30% p.a. for amounts $1,000 or more with interest paid end of term.

BoQ slices up to 15 bp

Bank of Queensland got in ahead of the RBA, dropping rates on its Premier Investment term deposit products.

BoQ's new top rate is 4.25% p.a. for both four- and six-month deposits, with interest paid end of term.

Here are BoQ's new rates for deposit amounts between $5,000 and $250,000:

Term	New rate (% change)	Interest paid
4 months	4.25% p.a. (-0.10)	End of term
6 months	4.25% p.a. (-0.15)	End of term
8 months	4.15% p.a. (-0.15)	End of term
9 months	4.10% p.a. (-0.10)	End of term
12 months	3.90% p.a. (-0.10)	Annually

The rates drop by 10 basis points for monthly interest payments.

Me too

BoQ subsidiary ME Bank also adjusted its short-term rates lower this week, cutting 10 basis points from its four-, five-, and six-month rates.

This applies to deposit amounts between $5,000 and $2 million, as follows:

Term	New rate (% change)	Interest paid
4 months	4.25% p.a. (-0.10)	End of term
5 months	4.30% p.a. (-0.10)	End of term
6 months	4.40% p.a. (-0.10)	End of term

The rates drop by five basis points for monthly interest payments.

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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.

Deposit amount

Compare

Provider	Interest rate	Interest frequency	Term	Automatic Rollover	Maturity Alert	Early Withdrawal Available	Minimum Deposit	Joint Application	Online Application	as ofMay 23, 2025

	4.45^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	1000	$product[$field["value"]]	$product[$field["value"]]	More details
FEATURED	Personal Term Deposits - 6 months Competitive interest rates on all term lengths Deposits covered up to $250,000 under Government's Finance Claims Scheme Loyalty bonus at renewal
Disclosure
FEATURED Personal Term Deposits - 6 months Competitive interest rates on all term lengths Deposits covered up to $250,000 under Government's Finance Claims Scheme Loyalty bonus at renewal More details Disclosure
	4.50^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
FEATUREDManage your term deposit online	Term Deposit - 6 months $0 monthly account fee Choose your own term with options from one month to five years. Guaranteed rate of return
Disclosure
FEATUREDManage your term deposit online Term Deposit - 6 months $0 monthly account fee Choose your own term with options from one month to five years. Guaranteed rate of return More details Disclosure
	4.50^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 6 months
Term Deposit - 6 months More details
	4.75^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	25000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 6 months
Term Deposit - 6 months More details
	4.50^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	25000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit ($25,000+) - 6 months
Term Deposit ($25,000+) - 6 months More details
	4.10^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Macquarie Bank Term Deposit (<$1,000,000) - 6 months
Macquarie Bank Term Deposit (<$1,000,000) - 6 months More details

Personal Term Deposits - 6 months

Product Features

Competitive interest rates on all term lengths
Deposits covered up to $250,000 under Government's Finance Claims Scheme
Loyalty bonus at renewal

Minimum deposit$1,000

4.45%Interest rate p.a.

6Term

More details

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Denise Raward

Denise Raward is a senior journalist with an interest in macroeconomics, property, and personal finances. She has worked extensively across mainstream media organisations and lectured at Queensland University of Technology, Griffith University, and Bond University. She holds a Bachelor of Business - Communication, a Master of Arts, and RG 146 financial certification in Generic Knowledge, Securities, and Regulation. Joining Savings.com.au in January 2024, Denise strives to deliver financial information in everyday language to help Australians to better understand how to manage their own – and their families' – ongoing financial health.

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Term deposit rates slip further amid May cash rate cut

Judo cuts short, raises long

Bank of Sydney trims six-month rate

Gateway trims 3 and 12 month rates

BoQ slices up to 15 bp

Me too

Personal Term Deposits - 6 months

Personal Term Deposits - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit ($25,000+) - 6 months

Term Deposit ($25,000+) - 6 months

Macquarie Bank Term Deposit (<$1,000,000) - 6 months

Macquarie Bank Term Deposit (<$1,000,000) - 6 months

Denise Raward