Summary: There were a material number of reductions in term deposit rates this week, consistent with the moves in the money markets. Investors can effectively say good bye to 5% rates. We note the more notable changes over the course of the week below.
CommBank drops out of the 5% club
Commonwealth Bank has slashed up to 95 basis points off its term deposit rates in a week where previous market leaders have dropped out of the 5% club. The big banks’ term deposit rates are almost never among the best on the market. Their need to entice new depositors is generally less pressing than the challenger banks who regularly feature on the term deposit leaderboards. CommBank’s latest round of term deposit rate cuts for terms shorter than 17 months should come as no surprise. Australia’s largest bank has been setting up its term deposit products for a cash rate cut as early as August 2024 when it first took the sword to rates and has been largely trimming them ever since. Its previous top rate special offer of 4.75% p.a. for eight months for existing customers is now off the books, down 95 basis points to 3.50% p.a
ING slices rates
The online bank had been another jostler in the competitive rate rankings, but its new top rate of 4.85% p.a. for three months sees it slip down the leaderboard. ING’s term deposits require a minimum opening deposit of $10,000 up to $5 million, so there is money to be made. Even so, it has trimmed up to 20 basis points from all its term deposit offerings.
Rabobank cuts shorter-term rates
The Dutch-owned online bank is often among the more competitive term deposit rates on the market, but it’s also dropped its three-, six-, nine-, and 12-month rates by up to 15 basis points this week. Rabobank’s new best rate is 4.75% p.a. for three months with interest paid end of term. Its six-month rate of 4.55% p.a. has now dropped considerably behind the market leaders still offering 5.00% p.a. and above.
Other rate movers
- G&C Mutual Bank has cut up to 40 basis points from its term deposit rates for terms between three months and two years.
- Summerland Bank has trimmed up to 30 basis points from its rates for terms from nine months up to five years.
- BankVic has cut a total of 50 basis points off its 18-month term deposit rate to 4.00% p.a. for amounts between $5,000 and $5 million with interest paid annually or end of term.
- Bank First has cut up to 20 basis points off a range of its three-month to five-year term deposit rates, with its 1 year Regular Income products also trimmed by 10 basis points.
| 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 | 3.50 | 3.80 | 4.20 | 3.80 | 3.10 | 3.10 | 3.10 |
| CBA | 1.25 | 1.50 | 3.15 | 3.20 | 3.30 | 3.40 | 3.60 | 3.60 | 3.75 | 3.50 | 3.45 | 3.50 |
| NAB | 1.25 | 1.45 | 3.15 | 3.25 | 3.35 | 3.50 | 3.80 | 4.40 | 3.80 | 3.10 | 3.10 | 3.10 |
| Westpac | 1.25 | 1.45 | 3.25 | 3.35 | 3.45 | 3.60 | 4.00 | 4.00 | 3.80 | 3.60 | 3.60 | 3.60 |
| Military Bank | 3.50 | 3.50 | 3.50 | 4.85 | 4.85 | 5.10 | 4.80 | 4.55 | ||||
| AMP Bank | 0.10 | 0.20 | 5.00 | 4.80 | 4.60 | 5.15 | 5.05 | 4.95 | 4.50 | 3.00 | 3.00 | 3.00 |
| Arab Bank Australia | 1.50 | 1.50 | 4.25 | 4.10 | 4.10 | 4.80 | 4.65 | 4.50 | 3.95 | 3.85 | 3.85 | 3.75 |
| Bank of Melbourne | 1.25 | 1.45 | 3.25 | 3.35 | 3.45 | 3.60 | 4.00 | 4.00 | 3.80 | 3.60 | 3.60 | 3.60 |
| Bank Australia | 4.80 | 4.70 | 4.70 | 4.60 | 4.25 | 4.00 | ||||||
| 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 | 2.00 | 2.00 | 3.75 | 3.00 | 3.00 | 4.25 | 4.00 | 4.70 | 3.90 | 3.80 | 3.80 | 3.80 |
| Bank of Sydney | 1.25 | 1.50 | 3.50 | 3.90 | 3.90 | 4.50 | 3.90 | 4.00 | ||||
| BankVic | 3.60 | 4.00 | 3.70 | 4.80 | 3.70 | 4.60 | 4.00 | 4.00 | 4.00 | 4.00 | ||
| Beyond Bank | 4.70 | 4.60 | 4.50 | 4.50 | 3.90 | 3.80 | 3.80 | 3.80 | ||||
| Bendigo Bank | 1.25 | 1.50 | 3.50 | 4.00 | 3.00 | 4.00 | 4.40 | 4.50 | 3.95 | 4.45 | 3.20 | 3.25 |
| Bank of Queensland | 0.75 | 0.80 | 2.25 | 4.60 | 1.25 | 4.75 | 4.70 | 4.50 | 4.50 | 3.30 | 3.30 | |
| BOQ Specialist | 4.60 | 4.65 | 4.75 | 4.70 | 4.50 | 4.30 | 3.50 | 3.50 | 3.50 | |||
| Great Southern Bank | 1.30 | 1.60 | 4.85 | 2.95 | 4.50 | 4.35 | 4.65 | 4.60 | 4.00 | 3.60 | 3.60 | 3.60 |
| Defence Bank | 4.25 | 3.60 | 3.70 | 4.45 | 4.00 | |||||||
| Greater Bank | 1.00 | 1.00 | 4.00 | 4.00 | 4.00 | 4.65 | 4.00 | 4.45 | 4.00 | 4.00 | 4.00 | 4.00 |
| Heritage Bank | 1.25 | 1.50 | 3.95 | 3.60 | 3.60 | 4.65 | 4.45 | 4.40 | 4.10 | 3.90 | 3.90 | 3.90 |
| Horizon Credit Union | 1.25 | 1.50 | 3.90 | 3.70 | 4.30 | 4.70 | 4.50 | 3.80 | 3.70 | |||
| HSBC | 1.85 | 2.00 | 4.50 | 3.75 | 3.75 | 4.40 | 4.30 | 4.20 | 4.10 | 4.00 | 4.00 | 4.00 |
| IMB | 4.20 | 4.75 | 4.60 | 4.00 | 4.00 | 4.00 | 4.00 | |||||
| ING Direct | 4.90 | 4.85 | 4.90 | 4.65 | 4.70 | 4.40 | ||||||
| in1bank | 4.00 | 4.10 | 4.35 | 4.43 | 4.48 | 4.61 | 4.56 | 4.50 | 4.40 | |||
| Judo Bank | 4.85 | 4.95 | 4.90 | 4.85 | 4.65 | 4.55 | 4.45 | 4.45 | ||||
| Macquarie Bank | 2.10 | 2.10 | 4.65 | 4.60 | 4.60 | 4.55 | 4.50 | 3.90 | 3.80 | 3.80 | 3.80 | |
| ME Bank | 0.75 | 0.80 | 2.25 | 4.65 | 1.25 | 4.80 | 4.75 | 4.55 | 2.00 | 2.00 | 2.00 | 2.00 |
| MyState | 0.50 | 0.50 | 4.00 | 4.20 | 4.80 | 5.00 | 4.75 | 4.65 | 3.95 | |||
| Newcastle Permanent | 1.00 | 1.00 | 4.00 | 4.00 | 4.00 | 4.65 | 4.00 | 4.45 | 4.00 | 4.00 | 4.00 | 4.00 |
| People's Choice Credit Union | 1.50 | 3.95 | 3.60 | 3.60 | 4.65 | 4.45 | 4.40 | 4.10 | 3.90 | 3.90 | 3.90 | |
| Police Bank | 4.10 | 3.75 | 3.00 | 4.00 | 5.00 | 4.75 | ||||||
| P&N Bank | 1.75 | 4.85 | 4.85 | 4.00 | 4.75 | 4.60 | 3.80 | 3.80 | 3.70 | 3.70 | 3.70 | |
| RACQ Bank | 0.55 | 1.60 | 4.85 | 3.50 | 3.50 | 4.90 | 4.65 | 4.65 | 3.90 | 3.90 | 3.90 | 3.90 |
| Rabobank Australia | 2.00 | 2.10 | 4.85 | 4.50 | 4.50 | 4.90 | 4.70 | 4.55 | 4.20 | 4.00 | 4.30 | 4.40 |
| Rural Bank | 1.25 | 1.50 | 3.50 | 4.00 | 3.00 | 4.00 | 4.40 | 4.50 | 3.30 | 3.30 | 3.30 | 3.30 |
| St. George Bank - Except VIC | 1.25 | 1.45 | 3.25 | 3.35 | 3.45 | 3.60 | 3.80 | 4.00 | 3.80 | 3.60 | 3.60 | 3.60 |
| Suncorp Bank | 1.30 | 1.90 | 3.95 | 4.70 | 3.45 | 4.85 | 4.40 | 4.30 | 3.85 | 3.85 | 3.85 | 3.85 |
| Teachers Mutual Bank | 4.80 | 4.80 | 4.80 | 4.85 | 4.75 | 4.60 | 4.00 | 4.00 | ||||
| The Capricornian | 3.00 | 3.25 | 4.00 | 4.00 | ||||||||
| Bank First | 0.75 | 1.00 | 4.65 | 4.65 | 4.80 | 4.75 | 4.65 | 4.00 | 4.00 | 4.00 | 4.00 |
*For comparison purposes rates to 1 year are paid at maturity. Rates longer than 1 year are paid annually. Rates are checked each week on company websites.