The main game this week was Tuesday's 25-basis point cut to the RBA cash rate - taking it to 3.85% from 4.10%.
It came as no surprise, least of all to term deposit rate setters who have been dropping rates across the market for months.
Two of the big banks - ANZ and Westpac - waited a few days before announcing term deposit cuts on Friday morning.
Let's check all this week's rate movements.
ANZ cuts best TD rate
The big four aren't generally known for their competitive term deposit rates but on Friday, ANZ lowered its best rate to 4.10% p.a. for amounts between $5,000 and under $2 million deposited for eight months with interest paid end of term.
Here are the new changes to ANZ's Advance Notice product for deposit amounts between $5,000 and under $2 million:
| Term | New rate (% change) | Interest paid |
| 8 months | 4.10% p.a. (-0.10) | End of term |
| 8 months | 4.09% p.a. (-0.10) | Semi-annually |
| 8 months | 4.07% p.a. (-0.09) | Quarterly |
| 8 months | 4.05% p.a. (-0.10) | Monthly |
Westpac chops across the board
Westpac also moved on Friday, cutting up to 25 basis points off a wide range of its term deposit rates.
Its best new everyday rate is 3.75% p.a. for a 12-23 month deposit for amounts between $5,000-$2 million with interest paid annually - a 15-basis point drop.
With more numbers now sporting a '2' in front, the outlook does indeed seem grim for savers.
Here is a selection of the new rates for deposit balances between $5,000 and $2 million:
| Term | New rate (% change) | Interest paid |
| 3 months | 2.75% p.a. (-0.15) | End of term |
| 4 months | 2.90% p.a. (-0.15) | End of term |
| 5 months | 3.00% p.a. (-0.15) | End of term |
| 6 months | 3.05% p.a. (-0.25) | End of term |
| 7 months | 3.20% p.a. (-0.20) | End of term |
| 8 months | 3.25% p.a. (-0.20) | End of term |
| 9 months | 3.30% p.a. (-0.20) | End of term |
| 10 months | 3.35% p.a. (-0.25) | End of term |
| 11 months | 3.40% p.a. (-0.20) | End of term |
| 12 months | 3.75% p.a. (-0.15) | End of term |
| 3 years | 3.00% p.a. (-0.15) | Annually |
| 4 years | 3.00% p.a. (-0.15) | Annually |
| 5 years | 3.00% p.a. (-0.15) | Annually |
The rates fall by five basis points for those choosing monthly interest payments, but are boosted by 10 basis points for those opening or renewing online.
Westpac's best rate is its 4.20% p.a. special online-only offer for terms of 11 months for existing personal and business customers opening or renewing online.
Judo cuts short, raises long
But it wasn't all knives out this week.
Judo Bank upped the rates on its four- and five-year term deposits for those who have a bit of cash they won't be needing for a while.
Judo's term deposit rates are generally in the mix of the best on the market but this week, rates from three months to three years took a haircut by up to 20 basis points.
Judo's new best rate is 4.45% p.a. for amounts between $1,000-$2 million deposited for six months with interest paid end of term - a 15-basis point cut on the old rate.
The challenger bank is also offering the same rate for a five-year deposit with interest paid annually - not a bad prospect for retirees looking to park their cash somewhere.
Here are Judo's latest rate changes for personal term deposits between $1,000-$2 million:
| Term | New rate (% change) | Interest paid |
| 3 months | 4.35% p.a. (-0.20) | End of term |
| 6 months | 4.45% p.a. (-0.15) | End of term |
| 9 months | 4.25% p.a. (-0.20) | End of term |
| 1 year | 4.15% p.a. (-0.15) | End of term |
| 2 years | 4.05% p.a. (-0.20) | Annually |
| 3 years | 4.05% p.a. (-0.20) | Annually |
| 4 years | 4.35% p.a. (+0.05) | Annually |
| 5 years | 4.45% p.a. (+0.10) | Annually |
The rates drop by 10 basis points for those opting for monthly interest payments.
Judo has also adjusted rates for its business and SMSF term deposit products.
See also: Savings accounts for SMSFs and how they work
Rabobank offers best rate for 5 year term
Rabobank has adjusted its term deposit rates across the board, with its best rate of 4.40% p.a. reserved for those who don't mind locking their cash away for five years.
The Dutch-owned bank has varied rates by up to 20 basis points for deposit amounts between $1,000 and $2 million, as follows:
| Term | New rate (% change) | Interest paid |
| 3 months | 4.30% p.a. (-0.10) | End of term |
| 6 months | 4.15% p.a. (-0.05) | End of term |
| 1 year | 4.00% p.a. (+0.15) | Annually |
| 2 years | 3.80% p.a. (+0.20) | Annually |
| 4 years | 4.25% p.a. (+0.10) | Annually |
| 5 years | 4.40% p.a. (+0.10) | Annually |
The rates drop by five basis points for semi-annual payments, 10 basis points for quarterly payments, and 15 basis points for monthly payments.
Rabo has raised most of its longer-term rates and also offers 15- and 18-month rates for those wanting regular interest payments only (no end of term rates available) although these rates have been trimmed.
Bank of Sydney trims six-month rate
Bank of Sydney made just one adjustment to its rates schedule this week, shaving five basis points from its competitive six-month term deposit rate.
The new rate is 4.60% p.a. for deposit amounts between $1,000 and $1 million with interest paid end of term.
The cut leaves Gateway Bank as the market leader for six-month term deposit rates for lower deposit amounts.
It's still offering 4.65% p.a. for amounts over $1,000, according to the Savings.com.au database.
Gateway trims 3 and 12 month rates
While Gateway has left its six-month rate untouched, it has cut its three- and 12-month rates by five basis points.
Its new three-month rate is 4.50% p.a. while the 12-month rate is 4.30% p.a. for amounts $1,000 or more with interest paid end of term.
BoQ slices up to 15 bp
Bank of Queensland got in ahead of the RBA, dropping rates on its Premier Investment term deposit products.
BoQ's new top rate is 4.25% p.a. for both four- and six-month deposits, with interest paid end of term.
Here are BoQ's new rates for deposit amounts between $5,000 and $250,000:
| Term | New rate (% change) | Interest paid |
| 4 months | 4.25% p.a. (-0.10) | End of term |
| 6 months | 4.25% p.a. (-0.15) | End of term |
| 8 months | 4.15% p.a. (-0.15) | End of term |
| 9 months | 4.10% p.a. (-0.10) | End of term |
| 12 months | 3.90% p.a. (-0.10) | Annually |
The rates drop by 10 basis points for monthly interest payments.
Me too
BoQ subsidiary ME Bank also adjusted its short-term rates lower this week, cutting 10 basis points from its four-, five-, and six-month rates.
This applies to deposit amounts between $5,000 and $2 million, as follows:
| Term | New rate (% change) | Interest paid |
| 4 months | 4.25% p.a. (-0.10) | End of term |
| 5 months | 4.30% p.a. (-0.10) | End of term |
| 6 months | 4.40% p.a. (-0.10) | End of term |
The rates drop by five basis points for monthly interest payments.
RACQ Bank slashes short-term rates
RACQ Bank has taken the axe to term deposit rates for 12 months and under, chopping up to 35 basis points from its old rates.
The new rates for amounts over $1,000 follow:
| Term | New rate (% change) | Interest paid |
| 3 months | 4.15% p.a. (-0.35) | End of term |
| 6 months | 4.20% p.a. (-0.35) | End of term |
| 9 months | 4.00% p.a. (-0.20) | End of term |
| 1 year | 4.00% p.a. (-0.20) | Annually |
Other rate cutters
- Bank Australia has shaved 10 basis points off its top rate, taking it to 4.35% p.a. for amounts over $500 deposited for three months.
- Horizon Bank has cut up to 40 basis points off a range of its term deposit rates. Its best rate - 4.00% p.a. for six months - for amounts $1,000 and over remains unchanged and is now Horizon's only rate with a '4' in front.
- People's Choice has cut its term deposit rates by up to 0.20% for short and long terms, with a best rate of 4.25% p.a. for amounts over $5,000 deposited for four months.
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Provider | |||||||||||||
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| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 1000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
| FEATURED | Personal Term Deposits - 6 months
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Disclosure | |||||||||||||
Personal Term Deposits - 6 months
Disclosure
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| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 5000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
| FEATUREDManage your term deposit online | Term Deposit - 6 months
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Disclosure | |||||||||||||
Term Deposit - 6 months
Disclosure
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| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 5000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 25000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 25000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit ($25,000+) - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 5000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Macquarie Bank Term Deposit (<$1,000,000) - 6 months | |||||||||||||
- Competitive interest rates on all term lengths
- Deposits covered up to $250,000 under Government's Finance Claims Scheme
- Loyalty bonus at renewal
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Bernadette Lunas
Harry O'Sullivan
Denise Raward
William Jolly
Staff Writers