Increases to term deposit rates this week come as ABS figures to December 2022 detailed the household savings ratio - measuring the level of household spending against income growth - fell to its lowest level since September 2017.
With savers now searching the deposit market constantly to ensure every dollar can go further, RBA retail deposit data for February detailed the average one-year term deposit rate continues to climb, now sitting at a rate of 3.15% p.a.
Rewinding a year ago, that figure was just 0.30% p.a.
NAB CEO Ross McEwan in an interview with ABC Radio National noted term deposit rates move independently of home loan rates, based on how much money is needed to fund lending books.
“We’re already starting to see the competition in deposits, savings rates, term deposit rates stepping up dramatically,” Mr McEwan said.
“And we are going to have to compete in that market if we [NAB] want those deposits.
“So, in my mind, within six months it will be competed out. And we’ll find it more difficult on the difference between what we borrow and what we lend at.”
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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 one-year term.
Provider | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Annually | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 1000 | 31 | $product[$field["value"]] | $product[$field["value"]] | More details | |||||
Personal Term Deposit - 12 months (Annually) | |||||||||||||
| Annually, At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 1000 | 31 | $product[$field["value"]] | $product[$field["value"]] | More details | |||||
Term Deposit ($1000+) - 12 months | |||||||||||||
| At Maturity, Annually | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 1000 | 1 | $product[$field["value"]] | $product[$field["value"]] | More details | |||||
Term Deposit - 1 Year | |||||||||||||
| Annually, At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 1000 | 31 | $product[$field["value"]] | $product[$field["value"]] | More details | |||||
Term Deposit ($1000-$500001) - 12 months | |||||||||||||
| Annually, At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 1000 | 31 | $product[$field["value"]] | $product[$field["value"]] | More details | |||||
Term Deposit - 12 months | |||||||||||||
CommBank increases deposits by up to 1.00% p.a.
Australia’s largest bank has increased term deposit rates twice this week by up to 100 basis points on products with terms ranging from 3 to 12-months.
Key highlights of CommBank’s deposit rate increase include:
- 6-month deposit increasing by 100 basis points to 3.45% p.a.
- 9-month deposit increasing by 95 basis points to 3.70% p.a.
- 11-month deposit increasing by 60 basis points to 3.75% p.a.
- 12-month special offer tem deposit increasing by 20 basis points to 4.20% p.a.
Across these increases, deposits require a minimum deposit of $5,000 with interest paid either at the end of term or annually.
Macquarie Bank increases deposits by 0.05% p.a.
Two products were increased by Australia’s fifth-largest bank over the past week - 6-month and 9-month deposits.
Macquarie Bank’s 5 basis point increase presents a 6-month rate of 4.05% p.a., while the 9-month rate offered currently sits at 4.15% p.a.
Across both deposit products a minimum deposit of $5,000 is required with interest paid at the end of term.
Bank of Queensland increases deposits by 0.20% p.a.
Bank of Queensland (BOQ) has increased term deposit rates across two products in the past week by 20 basis points.
BOQ’s Term Deposit Premier Investment 12-month rate for interest paid annually increased to 4.20% p.a., while the same product with interest paid monthly increased to 4.10% p.a.
Both deposits require a minimum deposit requirement of $5,000.
ME Bank increases deposits by 0.20% p.a.
Bank of Queensland-owned ME Bank has increased term deposit rates across 12 and 18-month business and personal products by 20 basis points in the past week.
Both ME Bank’s 12-month and 18-month deposit now offer a rate of 4.30% p.a., with interest paid annually on minimum deposits of $5,000.
Bankfirst increases deposits by up to 0.50% p.a.
Bankfirst increased term deposit rates in the past week by up to 50 basis points across a number of terms.
Bankfirst’s 1 to 5-year term deposits all increased by 25 basis points to offer a rate of 4.25% p.a. with a minimum balance of $500 required with interest paid annually.
Teachers Mutual Bank and UniBank varies deposits by up to 0.65% p.a.
Teachers Mutual Bank and its subsidiary UniBank increased term deposits in the past week by 65 basis points, yet at the same time cut rates across a number of products by 25 basis points.
Increases and decreases from the mutual banks applied to 11 and 13-month terms across both Edvest and Personal deposit products.
Highlights include:
- Edvest 11-month term deposits cut by 25 basis points to 4.05% p.a.
- Edvest 13-month term deposits increasing by 65 basis points to 4.20% p.a.
- Personal 11-month term deposits cut by 25 basis points to 4.00% p.a.
- Personal 13-month term deposits increasing by 65 basis points to 4.15% p.a.
Across these products, minimum deposits of $1,000 are required with interest paid at the end of term or annually.
The EdVest program is for over-50s, and costs $30 per year in membership fees.
Credit Union SA varies deposits by up to 0.90% p.a.
Credit Union SA has altered term deposits in the past week by up to 90 basis points, with the sole increase coming to its 4-month deposit product.
The 4-month term deposit increased by 90 basis points to offer a rate of 4.10% p.a.
At the same time the credit union slashed its 1-year deposit rate by 20 basis points to receive the same 4.10% p.a. rate.
Across both products a minimum balance of $5,000 is required with interest paid at the end of term.
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Harrison Astbury
Staff Writers
