Since the back end of last year, term deposit rates in Australia have been mostly declining - top returns that were once well above 5% p.a. are now all under 4.50%.

However with many economists now upwardly revising their prediction for what the terminal cash rate will be, the TD market is looking a little more competitive.

The top TD rate in our database remains 4.35% p.a. (Five months at MOVE Bank, seven at Judo) but this week saw some banks boost returns significantly, with several products now back returning above 4%.

Commonwealth Bank hikes two year rates

Term lengthDeposit sizePayment frequencyInterest rate (Change)
Two years$5,000+Annually3.40% p.a. (+0.05)
Two years$5,000+Semi-annually3.35% p.a. (+0.05)
Two years$5,000+Monthly3.30% p.a. (+0.05)

Australia's biggest bank gave two year rates a small boost this week, taking the maximum return to 3.40% p.a. with interest paid annually.

That's the same top two year rate as NAB and ANZ, with Westpac lagging a little behind at 3.35% p.a..

If you're in the market for a longer term TD though, Australia's smaller banks continue to offer the highest returns - Judo Bank offers 3.95% p.a. for two year terms with interest paid annually, with returns above 4% for longer terms.

A five year term deposit with annual interest repayments at both Judo Bank and Rabobank currently returns 4.30% p.a. - just 5 bps off the top rates anywhere in our database.

Suncorp hikes six month rates by up to 15 bps

Term lengthDeposit sizePayment frequencyInterest rate (Change)
Six months$5,000-$100,000End of term4.10% p.a. (+0.15)
Six months$100,000-$1mEnd of term4.10% p.a. (+0.10)
Six months$1m+End of term4.10% p.a. (+0.05)
Six months$5,000-$100,000Monthly4.05% p.a. (+0.15)
Six months$100,000-$1mMonthly4.05% p.a. (+0.10)
Six months$1m+Monthly4.05% p.a. (+0.05)

Suncorp boosted its six month returns, the highest rate it offers, to now offer above 4% for all customers no matter what size deposit or how regular interest payments are.

Among the biggest banks in Australia by deposit book, Suncorp's top rate of 4.10% p.a. is now behind only ING with its 4.15% p.a. top return, also on six month terms.

Qudos Bank, Bank Australia hike by up to 25 bps

Qudos Bank

Term lengthDeposit sizePayment frequencyInterest rate (Change)
Six months$5,000+End of term4.15% p.a. (+0.10)
Nine months$5,000+End of term4.20% p.a. (+0.25)
One year$5,000+End of term4.10% p.a. (+0.10)

Bank Australia

Term lengthDeposit sizePayment frequencyInterest rate (Change)
Six months$500+End of term4.15% p.a. (+0.10)
Nine months$500+End of term4.20% p.a. (+0.25)
One year$500+End of term4.10% p.a. (+0.10)

Finally, the merged Bank Australia and Qudos Bank entity also hiked TD rates this week, taking the top rate to 4.20% p.a. for nine month terms.

Rates are the same at both, but Bank Australia serves customers with a smaller deposit requirement - starting at $500 while you'll need $5,000 to open one under the Qudos brand.

At 4.20% p.a., BA and Qudos now offer a nine month return higher than any other provider in the Savings.com.au database.

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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.

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Filters
BankTerm DepositInterest Rate Interest Frequency Term Automatic Rollover Maturity Alert Early Withdrawal Available Minimum Deposit Maximum Deposit Notice Period to Withdraw Online Application Joint Application TagsFeaturesLinkComparePromoted ProductDisclosure
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
–
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning