Term Deposits

Summary:   A relatively quiet week on TDs – the heavy lifting was done last week when the Majors reset to the interest orthodoxy (conveniently for them). This week we note the following: The highest term deposit rate at NAB is now 4.60% p.a. for eight months after a 0.15% cut. NAB has cut rates on its range of term deposits by up to 0.20%. The new top rate at NAB is now 4.60% p.a., joint lowest of the big four. Move no surprise as NAB economists see an RBA rate cut next week. That’s now 20 basis points behind Westpac’s top rate of 4.80% p.a. and 15 bps short of the 4.75% p.a. available at ANZ, both also on eight-month terms. However these banks are yet to cut, and all majors tend to follow each other on the term deposit merry-go-round. NAB follows the lead of CommBank after Australia’s biggest bank cut TD rates last week, also to a new top rate of 4.60% p.a. The major banks have generally lagged behind smaller outfits on TD rates over the past couple of years, and there are still several products out there offering 5% p.a. or more.

Institution	1 m nom	2 m nom	3 m nom	4 m nom	5 m nom	6 m nom	9 m nom	1 Year	2 Year	3 Year	4 Year	5 Year
ANZ	1.25	1.45	3.15	3.25	3.35	3.5	3.8	4.2	3.8	3.1	3.1	3.1
Commonwealth Bank	1.25	1.5	3.15	3.2	3.3	3.4	3.6	3.6	3.75	3.5	3.45↓	3.5
NAB	1.25	1.45	3.15	3.25	3.35	3.5	3.8	4.4	3.8	3.1	3.1	3.1
Westpac	1.25	1.45	3.25	3.35	3.45	3.6	4	4	3.8	3.6	3.6	3.6
Military Bank			3.5	3.5	3.5	4.85	4.85	5.10↑	4.8	4.55
AMP Bank	0.1	0.2	5	4.8	4.6	5.15	5.05	4.95	4.5	3	3	3
Arab Bank Australia	1.5	1.5	4.25	4.1	4.1	4.8	4.65	4.5	3.95	3.85	3.85	3.75
Bank of Melbourne	1.25	1.45	3.25	3.35	3.45	3.6	4	4	3.8	3.6	3.6	3.6
Bank Australia			4.8			4.7	4.7	4.6	4.25	4
BankSA	1.25	1.45	3.25	3.35	3.45	3.55	3.95	3.95	3.95	3.75	3.55	3.55
Bankwest	2	2	3.75	3	3	4.25	4	4.7	3.9	3.8	3.8	3.8
Bank of Sydney	1.25	1.5	3.5	3.9	3.9	4.5	3.9	4
BankVic			3.6	4	3.7	4.8	3.7	4.6	4	4	4	4
Beyond Bank			4.70↑			4.6	4.50↓	4.50↓	3.9	3.8	3.8	3.8
Bendigo Bank	1.25	1.5	3.5	4	3	4	4.4	4.5	3.95	4.45	3.2	3.25
BOQ	0.75	0.8	2.25	4.6	1.25	4.75	4.7	4.5	4.5	3.3	3.3
BOQ Specialist			4.6	4.65		4.75	4.7	4.5	4.3	3.5	3.5	3.5
Great Southern Bank	1.3	1.6	4.85↑	2.95	4.5	4.35	4.65↑	4.60↑	4	3.6	3.6	3.6
Defence Bank			4.25			3.6	3.7	4.45	4
Greater Bank	1	1	4	4	4	4.65↓	4	4.45↓	4	4	4	4
Heritage Bank	1.25	1.5	3.95	3.6	3.6	4.65	4.45	4.4	4.1	3.9	3.9	3.9
Horizon Credit Union	1.25	1.5	3.9	3.7		4.3	4.7	4.5	3.8	3.7
HSBC	1.85	2	4.5	3.75	3.75	4.4	4.3	4.2	4.1	4	4	4
IMB			4.2			4.75		4.6	4	4	4	4
ING Direct			4.90↑	4.85		4.90↓	4.65	4.70↓	4.4
in1bank	4	4.1	4.35	4.43	4.48	4.61	4.56	4.5	4.4
Judo Bank			4.85↓			4.95↓	4.90↓	4.85↓	4.65	4.55	4.45	4.45
Macquarie Bank	2.1	2.1	4.65↓	4.60↓		4.60↓	4.55↓	4.50↓	3.9	3.8	3.8	3.8
ME Bank	0.75	0.8	2.25	4.65	1.25	4.8	4.75	4.55	2	2	2	2
MyState Bank	0.5	0.5	4	4.2	4.8	5.00↑	4.75	4.65	3.95
Newcastle Permanent	1	1	4	4	4	4.65↓	4	4.45↓	4	4	4	4
People's Choice Credit Union		1.5	3.95	3.6	3.6	4.65	4.45	4.4	4.1	3.9	3.9	3.9
Police Bank			4.1	3.75	3	4	5	4.75
P&N Bank		1.75	4.85	4.85↓	4	4.75	4.60↓	3.8	3.8	3.7	3.7	3.7
RACQ Bank	0.55	1.6	4.85	3.5	3.5	4.9	4.65	4.65	3.9	3.9	3.9	3.9
Rabobank Australia	2	2.1	4.85	4.5	4.5	4.9	4.7	4.55	4.2	4	4.3	4.4
Rural Bank Limited	1.25	1.5	3.5	4	3	4	4.4	4.5	3.3	3.3	3.3	3.3
St.George Bank - Except VIC	1.25	1.45	3.25	3.35	3.45	3.6	3.8	4	3.8	3.6	3.6	3.6
Suncorp Bank	1.3	1.9	3.95	4.7	3.45	4.85	4.4	4.3	3.85	3.85	3.85	3.85
Teachers Mutual Bank			4.8	4.8	4.8	4.85	4.75	4.6	4	4
The Capricornian			3			3.25		4	4
Bank First	0.75	1	4.65	4.65		4.8	4.75	4.65	4	4	4	4