A host of banks have already made changes to their term deposit interest rates so far in 2020 - for better or worse.
Term deposit rates are at historic lows at the moment, thanks to Australia's ultra-low cash rate of 0.75% following three cuts in 2019.
According to Savings.com.au's research, the average term deposit interest rate across all terms is below 1.40% p.a - that's more than 30 basis points (bps) less than the rate of inflation, currently sitting at 1.70%.
This doesn't bode well for those who rely on these investments to get by, and with another cut to the cash rate in February expected by many, things could be set to get even worse for term deposit customers.
Savings.com.au has summarised some of the key term deposit rate movements so far in January. Not all of them are bad, as it turns out.
Judo cuts rates but remains a market leader
Neobank Judo has cut the majority of its term deposit products by 10 basis points each as at January 14.
However, it still remains a market leader in term deposit rates even after these cuts.
Judo's 6-month, two-year, three-year, four-year and five-year deposit rates all fell by 10 basis points this week, while its one-year deposit rate remained unchanged.
The average rate across Judo's term deposit products is 2.12% p.a, comfortably above the 1.40% p.a average across the many term deposit products on the market.
As an example of how much higher Judo's rates are, the next highest rate for a one-year term is, according to Savings.com.au's research, ING's 1.75% p.a - a full 25 basis points below what Judo is offering.
Judo has been contacted for comment.
The table below displays some of the highest one-year deposit rates on the market.
*Rates correct as at 18 February 2020. Rates based on a $50,000 deposit.