Summary:
NAB, Macquarie lead term deposit rates lower. Another week, another round of term deposit interest rate cuts, with two of the majors among the latest rate slashers.
It’s no secret interest rates are heading lower, particularly after this week’s inflation data showed underlying inflation has dipped to within the RBA’s target range for the first time in more than three years. That’s good news for the economy, although depositors will no doubt miss the days when their cash earned 5%-plus interest without them having to think too much about it. But those times are over with 4.80% p.a. the best rate currently offered on the term deposit market for a six-month deposit. Longer term rates are decidedly lower in a sign where the market sees rates heading for the foreseeable future.
This week, more than a dozen authorised deposit-taking institutions (ADIs) were busy dropping term deposit rates, including a couple of the big guns, namely NAB and Macquarie Bank.
NAB offers only one rate above 4%. National Australia Bank’s best rate is now 4.20% p.a. for amounts between $5,000 and under $2 million, deposited for seven months. It’s a five basis point drop on the old rate but other rates have taken bigger hits – up to 20 basis points.
Macquarie tweaks 3-month rates. The team at Macquarie has shaved five basis points off its three month rates.
Gateway trims market-leading rate. The customer-owned bank has taken five basis points off its top rate, dropping it to 4.80% p.a., but still claiming the market’s best six-month rate along with Heartland Bank and G&C Mutual Bank.
Term deposit rates by Institution
| Institution | 1 month | 2 month | 3 month | 4 month | 5 month | 6 month | 9 month | 1 Year | 2 Year | 3 Year | 4 Year | 5 Year |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ANZ | 1.25 | 1.45 | 3 | 3.05 | 3.15 | 3.3 | 3.5 | 3.9 | 3.65 | 3.1 | 3.1 | 3.1 |
| Commonwealth Bank | 1.25 | 1.5 | 2.9 | 3.1 | 3.15 | 3.2 | 3.4 | 3.9 | 3.75 | 3.5 | 3.5 | 3.5 |
| NAB | 1.25 | 1.45 | 2.90↓ | 3.05 | 3.15 | 3.20↓ | 3.40↓ | 3.90↓ | 3.8 | 2.9 | 2.9 | 2.9 |
| Westpac | 1.25 | 1.45 | 2.9 | 3.05 | 3.15 | 3.3 | 3.5 | 3.9 | 3.65 | 3.15 | 3.15 | 3.15 |
| Military Bank | 3.5 | 4.3 | 4.45 | 4.65 | 4.5 | 4.45 | 3.8 | 3.8 | ||||
| AMP Bank | 0.1 | 0.2 | 4.35 | 4.4 | 4.45 | 4.4 | 4.2 | 4.05 | 3.7 | 3 | 3 | 3 |
| Arab Bank Australia | 1.25 | 1.25 | 4.05 | 3.9 | 3.9 | 4.6 | 4.10↓ | 3.90↓ | 3.6 | 3.5 | 3.5 | 3.4 |
| Bank of Melbourne | 1.25 | 1.45 | 2.9 | 3.05 | 3.15 | 3.3 | 3.5 | 3.9 | 3.05 | 3.05 | 3.05 | 3.05 |
| Bank Australia | 4.45 | 4.35 | 4 | 4 | 3.8 | 3.8 | ||||||
| BankSA | 1.25 | 1.45 | 2.9 | 3.05 | 3.15 | 3.3 | 3.5 | 3.9 | 3.05 | 3.05 | 3.05 | 3.05 |
| Bankwest | 2 | 2 | 3.75 | 3 | 4.2 | 4 | 3.8 | 3.8 | 3.6 | 3.6 | 3.75 | 3.75 |
| Bank of Sydney | 1.25 | 1.5 | 3.25 | 3.5 | 3.5 | 4.4 | 4.2 | 4.2 | ||||
| BankVic | 3.6 | 4 | 3.7 | 4.45 | 3.7 | 4.2 | 4 | 4 | 4 | 4 | ||
| Beyond Bank | 4.40↓ | 4.25↓ | 4.00↓ | 3.85↓ | 3.6 | 3.5 | 3.5 | 3.5 | ||||
| Bendigo Bank | 1.25 | 1.5 | 2.9 | 3.4 | 3.1 | 3.8 | 3.7 | 3.6 | 2.95 | 3 | 3 | 3 |
| BOQ | 0.75 | 0.8 | 2.25 | 4.35 | 1.25 | 4.4 | 4.2 | 4 | 3.3 | 3.3 | 3.3 | |
| BOQ Specialist | 4.4 | 4.45 | 4.5 | 4.4 | 4.1 | 3.5 | 3.5 | 3.5 | 3.5 | |||
| Great Southern Bank | 1.3 | 1.6 | 4.3 | 4.55 | 4.45 | 4.6 | 4.15 | 4 | 3.6 | 3.4 | 3.4 | 3.4 |
| Defence Bank | 4 | 3.6 | 3.7 | 4.1 | 4.1 | 4.2 | 3.75 | |||||
| Greater Bank | 1 | 1 | 3.95↓ | 3.95↓ | 3.95↓ | 4.35↓ | 3.80↓ | 4.00↓ | 3.50↓ | 4 | 3.50↓ | 3.50↓ |
| Heritage Bank | 1.25 | 1.5 | 3.95 | 4.65 | 3.6 | 4.45 | 4.35 | 4.25 | 4.1 | 3.9 | 3.9 | 3.9 |
| Horizon Credit Union | 1.25 | 1.5 | 3.7 | 3.7 | 4.00↓ | 4.30↓ | 4.10↓ | 3.7 | 3.6 | |||
| HSBC | 1.85 | 2 | 4 | 3.5 | 3.5 | 3.9 | 3.9 | 3.9 | 3.5 | 3.5 | 3.5 | 3.5 |
| IMB | 4.2 | 4.5 | 4.25 | 3.75 | 3.75 | 4 | 4 | |||||
| ING Direct | 4.25 | 4.25 | 4.5 | 4.3 | 4.05 | 3.8 | ||||||
| in1bank | 3.85 | 3.9 | 4.45 | 4.4 | 4.3 | 4.25 | 4.1 | 3.95 | 3.85 | |||
| Judo Bank | 4.70↓ | 4.60↓ | 4.45↓ | 4.30↓ | 4.20↓ | 4.2 | 4.2 | 4.25 | ||||
| Macquarie Bank | 2.1 | 2.1 | 4.30↓ | 4.25 | 4.1 | 3.9 | 3.8 | 3.6 | 3.65 | 3.8 | 3.8 | |
| ME Bank | 0.75 | 0.8 | 2.25 | 4.35 | 4.4 | 4.5 | 2 | 2 | 2 | 2 | 2 | 2 |
| MyState Bank | 0.5 | 0.5 | 4 | 4.2 | 4.6 | 4.6 | 4.4 | 4.25 | 3.95 | |||
| Newcastle Permanent | 1 | 1 | 3.95↓ | 3.95↓ | 3.95↓ | 4.35↓ | 3.80↓ | 4.00↓ | 3.50↓ | 4 | 3.50↓ | 3.50↓ |
| People's Choice Credit Union | 1.5 | 3.95 | 4.65 | 3.6 | 4.45 | 4.35 | 4.25 | 4.1 | 3.9 | 3.9 | 3.9 | |
| Police Bank | 4.1 | 3.75 | 3 | 4.25 | 4.5 | 4.45 | ||||||
| P&N Bank | 1.6 | 4.3 | 4.15 | 4.1 | 4 | 3.9 | 4 | 4 | 4 | 4 | 4 | |
| RACQ Bank | 0.55 | 1.6 | 4.85 | 3.5 | 3.5 | 4.65 | 4.4 | 4.4 | 3.9 | 3.5 | 3.5 | 3.5 |
| Rabobank Australia | 2 | 2.1 | 4.45 | 4 | 4 | 4.35 | 4.05 | 3.85 | 3.6 | 3.8 | 4.15 | 4.3 |
| Rural Bank Limited | 4.40↓ | 0 | 0 | 4.25↓ | 4.00↓ | 3.85↓ | 3.6 | 3.5 | 3.5 | 3.5 | ||
| St.George Bank - Except VIC | 1.25 | 1.45 | 2.9 | 3.05 | 3.15 | 3.3 | 3.5 | 3.9 | 3.05 | 3.05 | 3.05 | 3.05 |
| Suncorp Bank | 1.3 | 1.9 | 3.9 | 4.4 | 3.45 | 4.55 | 4 | 3.85 | 3.35 | 3.35 | 3.35 | 3.35 |
| Teachers Mutual Bank | 4.4 | 4.25 | 4.05 | 4.6 | 4.3 | 4.3 | 3.8 | 3.8 | ||||
| The Capricornian | 3 | 3.25 | 4 | 4 | ||||||||
| Bank First | 0.75 | 1 | 4.35 | 4.35 | 4.5 | 4.35 | 4.25 | 3.8 | 3.8 | 3.8 | 3.8 |