Some of the biggest banks in Australia, as well as much smaller regional outfits, were among many to alter term deposit rates this week.
For the most part, rates continue to shift upwards, with a very real possibility that the RBA might increase the cash rate once again in June.
Rate changes this week varied from minor alterations to increases of up to 90 basis points, as well as new market leaders for one year and six month terms.
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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.
ING increases rates by up to 50 basis points
| Term length | Deposit size | Payment frequency | Interest rate (Percentage point change) |
| Three months | $10,000-$5,000,000 | End of term | 4.15% p.a (+0.25) |
| Six months | $10,000-$5,000,000 | End of term | 4.70% p.a (+0.4) |
| Eleven months | $10,000-$5,000,000 | End of term | 4.70% p.a (+0.5) |
| One year | $10,000-$5,000,000 | End of term | 4.75% p.a (+0.15) |
ING has consistently offered some of the most competitive products available to savers throughout this high interest rate period.
For the past couple of months, ING and BOQ have been battling it out to offer the highest rate on savings accounts, with both offering annual returns above the 5% mark.
This week, ING boosted six month term rates to one of the highest in Australia, with 4.70% p.a interest available to savers who give their money to ING for half a year.
ING's other term deposit products remain among the largest returns, with 4.75% p.a available for one year and 4.70% p.a for eleven months.
Firstmac increases rates by up to 15 basis points
| Term length | Deposit size | Payment frequency | Interest rate (Percentage point change) |
| Six months | $5,000-$5,000,000 | End of term | 4.75% p.a (+0.1) |
| One year | $5,000-$5,000,000 | End of term | 4.85% p.a (+0.05) |
Firstmac announced this week market leading rates (according to Savings.com.au's market research) for both six month and one year term deposit products.
Both products are 5 basis points clear of the next-highest available rates (ING for six months and Judo for one year).
Macquarie increases rates by up to 10 basis points
| Term length | Deposit size | Payment frequency | Interest rate (Percentage point change) |
| Three months | $5,000-$1,000,000 | End of term | 4.35% p.a (+0.05) |
| Four months | $5,000-$1,000,000 | End of term | 4.35% p.a (+0.1) |
| Six months | $5,000-$1,000,000 | End of term | 4.40% p.a (+0.1) |
Macquarie announced minor increases to its short term deposit products.
The 10 basis point increase to six month terms is interesting given last week the bank moved rates on the same product down by 5 basis points.
Commonwealth Bank decreases rates by up to 10 basis points
| Term length | Deposit size | Payment frequency | Interest rate (Percentage point change) |
| Five months | $5,000-$1,999,999.99 | End of term | 3.10% p.a (-0.1) |
| Nine months | $5,000-$49,999.99 | End of term | 3.45% p.a (-0.05) |
| Nine months | $50,000-$1,999,999.99 | End of term | 3.50% p.a (-0.05) |
| Ten months | $5,000-$49,999.99 | End of term | 3.45% p.a (-0.05) |
| Ten months | $50,000-$1,999,999.99 | End of term | 3.50% p.a (-0.05) |
| Eleven months | $50,000-$1,999,999.99 | End of term | 3.55% p.a (-0.05) |
CBA was the only one of the big four banks to change term deposit rates this week, decreasing returns on some products with more eclectic term lengths.
When you compare term deposits at CBA with those available at market-leaders like ING, the rates seem behind the eight-ball, a common theme among all of Australia's four largest banks.
Other movers
- Australian Military Bank increases rates by up to 50 basis points.
- MOVE increased rates by up to 15 basis points
- Horizon increased rates by up to 90 basis points
- Illawarra Credit Union increased rates by up to 25 basis points
- MyState increased rates by up to 330 basis points
- Summerland Credit Union increased rates by up to 45 basis points
- The Mac increased rates by up to 25 basis points
- Australian Unity increased rates by up to 80 basis points
- Bendigo varied rates by up to 35 basis points
- ME varied rates by up to 60 basis points
Picture by ING
William Jolly
