Term deposit rates are falling further, tightening the squeeze on savers as the central bank resumes its easing cycle.
With the latest 25 basis point cut, the cash rate is now down to 3.60%, marking the RBA's third cut in 2025.
Macquarie, AMP, and ING are among the banks that have already responded to the latest cut, passing on the full 25 basis points and reducing term deposit and savings account rates accordingly.
But not all banks are following the downward trend.
A few outliers have raised select offers, apparently aiming to attract savers amid the tightening market.
This may have created pockets of opportunity for those willing to shop around, even as overall returns continue to fall.
Here's how some of the big players are reacting following the RBA cut.
Will your savings account rate drop after the RBA's move? Check out our rolling coverage of banks' reactions
AMP cuts interest rates across the board
AMP Bank has implemented a series of variable interest rate cuts across its Savings, Business, and SMSF deposit products, effective Friday, 15 August.
Key movements include:
- AMP Saver and AMP Business Saver accounts will see a 0.25% p.a. reduction to their standard variable rates
- AMP Bank GO Save will drop by 0.25% p.a. for balances up to $5 million
- AMP Cash Manager accounts will also be reduced by 0.25% p.a. for balances between $10,000.01 and $5 million
- GO Business Save rates will fall by 0.20% p.a. for balances up to $250,000 and by 0.25% p.a. for higher balances
- SMSF-focused products, including the SuperEdge Saver, Cash, and Pension accounts, will each see a 0.25% p.a. rate cut
Macquarie reduces variable deposit rates
Macquarie Bank was one of the first to respond to the Reserve Bank's latest rate cut, trimming its variable deposit rates by 25 basis points.
From Friday 15 August, customers opening a Macquarie Savings Account will earn a welcome rate of 4.60% p.a. for the first four months on balances up to $250,000 - a reduction from the previous 4.85% p.a. offer.
In addition, the ongoing variable rate on the account has been lowered to 4.25% p.a., down from 4.50% p.a., and will apply to balances up to $2 million.
ING shifts term deposit rates
ING has announced a series of rate adjustments to its personal term deposit offerings, with changes of up to 0.25% now in effect.
The updates apply to a range of fixed terms, affecting both short and medium durations.
| Term length | Deposit size | Payment frequency | New rate (change) |
|---|---|---|---|
| 90 days | $10,000-$5,000,000 | End of term | 4.05% p.a. (-0.25) |
| 120 days | $10,000-$5,000,000 | End of term | 4.05% p.a. (-0.20) |
| 180 days | $10,000-$5,000,000 | End of term | 4.05% p.a. (-0.15) |
| 210 days | $10,000-$5,000,000 | End of term | 4.35% p.a. (+0.20) |
| 270 days | $10,000-$5,000,000 | End of term | 4.10% p.a. (+0.05) |
ING joins a handful of banks in raising the rates on select term deposit products following the RBA's recent move.
Other movers
Other Aussie banks making deposit rate moves amid the RBA's August cut include:
- Bank of Queensland and subsidiary ME Bank have dropped rates on certain savings account products in response to the cut
- Judo Bank lowered rates on Personal, Business, and SMSF Term Deposits by as much as 0.15% p.a.
- G&C Mutual Bank dropped term deposit rates by as much as 35 basis points
- MOVE Bank shifted fixed-term deposits by up to 10 basis points
- Rabobank cut term deposit interest rates by up to 0.20% 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.
| Bank | Term Deposit | Interest Rate | Interest Frequency | Term | Automatic Rollover | Maturity Alert | Early Withdrawal Available | Minimum Deposit | Maximum Deposit | Notice Period to Withdraw | Account Keeping Fee | Online Application | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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 | – | – |
