- Westpac has launched a new special term deposit offering of 4.80% p.a. for two years
- Macquarie Bank has again lifted its top term deposit rate to 4.90% for 12 months
- Both are trumped by another 5.00% 12-month rate hitting the market on Wednesday
Westpac has announced a new special offer term deposit deal - 4.80% p.a. for a two-year term for existing customers opening or renewing online.
The rate drops markedly for those opting for the 12-month online special rate of 4.35% p.a., considerably below the market-leading 12-month rate of 5.00% p.a.
The 12-month offer has been in place since 3 February and hasn't received a boost despite significant increases in term deposit rates in recent weeks.
Both Westpac special offers apply to deposit amounts between $5,000 and $2 million with interest paid at maturity.
They also include a built-in 0.10% online bonus with rates of 4.70% p.a. and 4.25% p.a. applying to customers who choose to open or renew in-branch.
Macquarie lifts again
But both rates have been shaded by Macquarie Bank's latest round of term deposit rate increases, with its 12-month rate lifting to 4.90% p.a.
Macquarie has been nudging its rates higher for the past six weeks, keeping them comfortably above the offerings of the big four.
As well as lifting its 12-month rate to 4.90% p.a. for deposits of $5,000 to $1 million, Macquarie also raised its six- and nine-month rates, as follows:
| Term | New rate (% change) | Deposit amount | Interest paid |
|---|---|---|---|
| 6 months | 4.75% p.a. (+0.05) | $5,000–$1m | End of term |
| 4.70% p.a. (+0.05) | over $1m–under $10m | End of term | |
| 9 months | 4.80% p.a. (+0.10) | $5,000–$1m | End of term |
| 4.75% p.a. (+0.10) | over $1m–under $10m | End of term | |
| 1 year | 4.90% p.a. (+0.05) | $5,000–$1m | End of term |
| 4.75% p.a. (+0.05) | over $1m–under $10m | Annually |
It's a further boost to Macquarie's short-term offerings after it also raised some rates last week.
Another 5% rate hits the market
But as with many of the market's best rates, it is the smaller players who tend to lift the bar.
Customer-owned merger partners Bank Australia and Qudos Bank have hiked their 12-month term deposit rate to 5.00% p.a. to join the market leader, according to the Savings.com.au data base.
It's a 20-basis point jump on the old rate and applies to deposit amounts of $500 to $3 million at Bank Australia and to deposits over $5,000 to Qudos customers.
Qudos will pay the same rate to customers choosing either monthly or end of term payments.
Bank Australia drops the rate to 4.90% p.a. for those choosing monthly interest payments.
The top 5.00% rate matches another small bank special offer launched last week.
Community First Bank is offering 5.00% p.a. for amounts between $10,000 and $1 million deposited for 12 months with interest paid end of term.
The offer is available until 31 May or until allocation is reached.
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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 | – | – |
