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

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on June 03, 2022 Fact Checked
Is it time to lock in a term deposit rate or wait?

RACQ, MOVE, ME Bank and more hiked term deposit rates by as much as 85 basis points.

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. 

Lender

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

Term Deposit - 6 months

    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, 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 June 29, 2022. View disclaimer.


                Image by Micah Williams via Unsplash

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                author-avatar
                Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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