Which banks increased term deposits this week?

To lock in a term deposit or stick with a high interest savings account? This is a question many Aussie savers are now asking themselves following incoming increases to both savings accounts and term deposit rates. 

Earlier this week, Treasurer Jim Chalmers expressed concern to some bank CEOs regarding when rates rise, those benefits aren't passed on to savers as quickly as rate cuts are passed on to savers.

"I think that's the reality, and I think it's disappointing," the Treasurer told ABC RN Breakfast.

"If people aren't getting the kinds of returns that they think they should be getting from their savings, I would encourage them to shop around and find a bank that is prepared to treat you better.

"The victims of these low interest rates that we've had for a little while now are savers. We want them to be the beneficiary of rising interest rates in the same way that they were victims of rates when they went down to those historic lows, and so I'd encourage and urge the banks to do the right thing by them."

A number of banks including CommBank, Judo Bank, Bank of Us, The Mutual Bank and Credit Union SA passed on more significant term deposit rate increases over the past week.

CommBank term deposit rate increase

On Monday prior to the RBA's Tuesday decision, CommBank increased term deposit rates by up to 60 basis points.

Highlights of this increase across term deposits with a minimum deposit balance of $5,000 include:

• 13 months, paid annually: 60 basis point increase to 1.20% p.a.
• 24 months, paid annually: 50 basis point increase to 1.50% p.a.
• 36 months, paid annually: 25 basis point increase to 1.75% p.a. 

Following the RBA's decision to lift the cash rate, CommBank announced the introduction of a new 15-month Term Deposit Special offer of 2.50% p.a effective 15 July. 

Judo Bank term deposit rate increase

Judo Bank has increased term deposit rates by up to 95 basis points for savers looking for the security of storing away money in the short-term. 

Increases to Judo Bank's term deposit portfolio with a minimum deposit balance of $1,000 include:

• 3 months, paid monthly: 75 basis point increase to 1.80% p.a.
• 3 months, paid at end of term: 75 basis point increase to 1.90% p.a.
• 6 months, paid monthly: 95 basis point increase to 2.70% p.a.
• 6 months, paid at end of term: 95 basis point increase to 2.80% p.a.

Bank of Us term deposit rate increase

The Tasmanian bank increased term deposit rates this week by up to 110 basis points.

Highlights of this increase across term deposits with a minimum deposit balance of $5,000 include:

• 12 months, paid at end of term: 110 basis point increase to 2.40% p.a.
• 24 months, paid annually: 70 basis point increase to 2.65% p.a.
• 36 months, paid annually: 75 basis point increase to 2.65% p.a. 

The Mutual Bank term deposit rate increase

The Mutual Bank increased term deposit rates this week by up to 55 basis points.

Highlights of this increase across term deposits with a minimum deposit balance of $5,000 include:

• 24 months, paid monthly: 50 basis point increase to 2.90% p.a.
• 24 months, paid annually: 50 basis point increase to 3.00% p.a.
• 36 months, paid monthly: 55 basis point increase to 3.20% p.a.
• 36 months, paid annually: 55 basis point increase to 3.30% p.a.

Credit Union SA term deposit rate increase

Credit Union SA increased term deposit rates by up to a hefty 200 basis points - two full percentage points.

Highlights of this increase across term deposits with a minimum deposit balance of $5,000 include:

• 1 year, paid at end of term: 200 basis point increase to 3.00% p.a.
• 2 years, paid at end of term: 180 basis point increase to 3.30% p.a.
• 3 years, paid at end of term: 170 basis point increase to 2.70% p.a. 

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