ANZ and Judo Bank were among several providers to increase their term deposit account rates this week.
With the RBA widely expected the bump the cash rate up by at least 25 basis points at its monetary policy decision next week, these banks are likely trying to stay ahead of the curve and keep their rates competitive.
Judo Bank increases term deposits by up to 0.20% p.a
Judo Bank this week moved up its term deposit rates by up to 20 basis points.
Most notably, Judo's one year term accounts now pay 4.40% p.a in interest, one of the most competitive rates in the market.
Only G&C Mutual, at 4.50% p.a, has a greater yield for deposits over $1,000 according to Savings.com.au market research.
Meanwhile, Judo's six month rates moved up by 5 basis points, meaning deposit holders who receive their interest at the end of term will now earn a 4.00% p.a rate.
ANZ increases term deposits by up to 0.60% p.a
ANZ was the only one of the big four to raise rates this week.
Economists from ANZ have predicted the cash rate peak to be higher than most others expect, and it was its shorter-term accounts in particular that saw significant increases.
ANZ's four month term deposit with an end-of-term payment saw a 60 basis point increase to 3.60% p.a, while those who wish to receive quarterly and monthly payments can benefit from a 59 basis point increase to 3.59% p.a and 3.58% p.a respectively.
One year accounts increased by 10 basis points to 4.1% p.a, with slight reductions for those receiving quarterly or monthly payments.
ANZ's one year product now sits 10 basis points above equivalent products from the other major banks.
Bendigo Bank increases term deposits by up to 0.85% p.a
The biggest mover this week was Bendigo, the seventh largest bank in Australia in terms of assets.
The 12-month rate is now up to 3.75% p.a, a 40 basis point increase (again, with slight reductions in the interest rate for payments made quarterly or monthly).
This though still lags behind the big four and other competitors.
A host of other Bendigo products saw rates increase, with 15 month account terms seeing an 85 basis point increase to 3.35% p.a.
Other moves
Northern Inland Credit Union increased term deposit accounts by up to 0.20%, moving its six month term returns to 3.00% p.a.
Macquarie increased its four month term by 5 basis points to 3.40% 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.
Picture by Micheile dot com on Unsplash
Harry O'Sullivan
Denise Raward
Harrison Astbury
Staff Writers
