ME has become the first bank in this current rate increasing cycle to offer an ongoing 12-month term deposit of 5.00% p.a. according to InfoChoice's research and database. 

Transport Mutual Credit Union also has a 5% p.a. 12-month term deposit offered as a special offer for new customers, with a minimum deposit of $1,000.

For months others have hovered around the high-4s. 

For ME's product, the rate applies for 12 to 18 month terms, with a minimum deposit of $5,000.

The maximum deposit is $2 million, and interest is paid at the end of term.

There is a 5 basis point reduction in the interest rate if savers opt for monthly interest payments.

12-month term deposit leaders - 14 June 2023

Bank % Rate Per Annum Minimum Deposit
ME 5.00 $5,000
Transport Mutual* 5.00 $1,000
Judo 4.90 $1,000
Firstmac/Goldfields Money 4.85 $5,000
AMP 4.80 $25,000

Source: InfoChoice Product Database & Research. Interest paid at maturity unless otherwise stated.

*Special offer for new customers, deposits made from external bank account.

A host of banks also offer term deposit rates of 4.70% to 4.75% p.a. including Bendigo Bank, ING, and Citi.