Is it time to lock in a term deposit rate or wait?

With the RBA cash rate meeting on the horizon, banks have once again raised term deposit rates. 

The RBA is tipped to raise the cash rate for the second consecutive month at next week's meeting. 

The consensus seems to be a 25 basis point hike, however after stronger-than-expected GDP growth, Westpac chief economist Bill Evans has pencilled in a 40 basis point hike.

Term deposit rates have climbed strongly in recent months, and with more cash rate hikes potentially on the horizon, this trend could continue. 

ME Bank increases term deposits by up to 50 basis points

• 6 months, paid end of term: increased 40 basis points to 1.50% p.a.
• 9 months, paid end of term: increased 50 basis points to 1.75% p.a.
• 18 months, paid annually: increased 30 basis points to 2.30% p.a.
• 2 years, paid annually: increased 25 basis points to 2.75% p.a.

MOVE Bank increases fixed term deposit by up to 0.75

• 12 months, paid end of term: increased 55 basis points to 1.50% p.a.
• 13 months, paid annually: increased 75 basis points to 1.75% p.a.

RACQ Bank increases term deposit by up to 85 basis points

• 6 months, paid end of term: increased 30 basis points to 1.00% p.a.
• 9 months, paid end of term: increased 50 basis points to 1.50% p.a.
• 2 years, paid annually: increased 85 basis point hike to 2.60% p.a
• 3 years, paid annually: increased 80 basis point hike to 2.80% p.a.

Hume Bank increases Term Deposit by up to 40 basis points

• 1 year, paid annually: increased 40 basis point to 1.00% p.a
• 2 years, paid annually: increased 40 basis point to 1.10% p.a.

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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. 

Image by Micah Williams via Unsplash