- Westpac and NAB have raised their best term deposit rates to match CommBank
- The big three are now offering 5.20% p.a. for 12-month deposits
- ING has also boosted its 11-month and two-year term deposit rates on Monday
Westpac announced its new special offer rates late Friday afternoon, hours after CommBank claimed bragging rights with the big four's top term deposit rate on Friday morning.
Westpac matches CommBank's 5.20% p.a. with its 12-month online-only deposit special, a boost of five basis points on the old rate.
A rate of 5.10% p.a. applies to those taking up the offer through a branch.
Both special offer rates are only available to existing Westpac personal or business customers for deposit amounts between $5,000 and $2 million with interest paid monthly, half-yearly, or at maturity.
The special rates are also available at Westpac Group's other brands: St George, Bank of Melbourne, and BankSA.
NAB gets in on the act
Not to be left behind, NAB moved on Monday morning to match the big two, lifting its 12-month term deposit rate to 5.20% p.a.
The rate applies to deposits between $5,000 and $1,999,999 when interest is paid annually.
Lower rates apply for more frequent interest payments, as follows:
- 5.15% p.a. - semi-annual
- 5.10% p.a. - quarterly
- 5.10% p.a. - monthly
NAB also announced a significant 1.30% cut to its nine-month rate on Monday, now 3.70% p.a. when interest is paid end of term.
The changes turn the tables on ANZ Bank which had previously been the frontrunner among the big four's term deposit offerings.
ANZ's best rate remains at 5.15% p.a. after the bank lobbed 10 basis points off its 5.25% p.a. 12-month rate on 4 September.
Big four's best term deposit rates
| Bank | Rate (term) | Balance amount | Interest paid | Conditions |
| CommBank | 5.20% p.a. (12 months) | $5,000 - $5m | Annually | Opened or renewed by personal or SMSF customers |
| Westpac | 5.20% p.a. (12 months) | $5,000 - $2m | Monthly, half-yearly, or annually | Existing Westpac customers opening or renewing online only |
| NAB | 5.20% p.a. (12 months) | $5,000 - $1,999,999 | Annually | * |
| ANZ | 5.15% p.a. (12 months) | $5,000 - $1,999,999 | Annually | * |
(*Read CommBank and Westpac conditions)
ING supercharges select rates
Also on Monday morning, online bank ING upped its 11-month and two-year term deposit rates by up to 55 basis points.
ING's new 11-month rate is 5.35% p.a., a 35-basis point boost to the old rate.
Its new two-year rate is 5.25% p.a., an increase of 55 basis points.
The rates apply to deposits of between $10,000 and $5 million with interest paid end of term.
Banks manoeuvre for possible cash rate hike
Term deposit rates have been on the move in recent weeks as the market prepares for another cash rate increase.
Markets are pricing in a 76% chance of the case rate lifting by 25 basis points to 4.60% at the Reserve Bank's September meeting.
NAB is alone among the big four banks in tipping a September rate hike with the other three expecting the central bank will wait until November.
Either way, economists and markets are in broad agreement there will be at least one further cash rate increase in 2026.
The Reserve Bank's monetary policy board is due to meet on 28-29 September.
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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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.25% 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 | – | – |
