Key points:
  • ING increased certain term deposit rates to 5.30% p.a.
  • Big banks CommBank and NAB increased rates by up to 30 basis points
  • The Mutual Bank hiked term deposit rates by 120 basis points

Indeed, the last seven days have birthed a new market-leader in the term deposit space. 

ING increased the rate on its one year term deposits by 30 basis points to 5.30% p.a. – the highest rate on offer from any Aussie bank. 

Interested parties would be wise to bear in mind that the current rate of annual inflation sits at 5.4%, meaning such a return isn’t inflation-beating at this point.

Though, the RBA predicts inflation will slow from here on out

If the central bank’s forecasts prove correct and annual inflation drops to 3.5% by this time next year, those signing up to 5.30% term deposits now may be laughing when their term expires. 

ING crowned market-leader with 5.30% p.a. term deposit interest rate

Banking mainstay ING raised eyebrows after the RBA hiked the cash rate by 25 basis points last week, vowing to increase the rate on its one year term deposit to 5.30% p.a.

That hike came into play on Tuesday, along with a 25 basis point increase to the bank’s six month term deposit interest rate. 

Term length

Deposit size

Change

Interest rate

Interest paid

Six months

$10,000-$5,000,000

25 basis points

5.05% p.a.

End of term

One year

$10,000-$5,000,000

30 basis points

5.30% p.a.

End of term

CommBank joins in, hiking some term deposit rates by 30 basis points

CommBank broke out in front of its big four peers this week, increasing some rates by as much as 30 basis points up to a high of 5.10% p.a. on two year deposits.

Though, the biggest of the banks did drop the special rate offered on new 36 month term deposits opened by personal or self managed super fund (SMSF) customers by 10 basis points to 4.90% p.a. 

Other changes include:

Term length

Deposit size

Change

Interest rate

Interest paid

One year
(special offer) 

$5,000-$1,999,999

30 basis points

5.05% p.a.

Annually

18-23 months
(special offer) 

$5,000-$1,999,999

30 basis points

5.05% p.a.

Annually

Two years
(special offer) 

$5,000-$1,999,999

10 basis points

5.10% p.a.

Annually

Three years
(special offer) 

$5,000-$1,999,999

-10 basis points

4.90% p.a.

Annually

36-47 months

$5,000-$49,999

5 basis points

4.00% p.a.

Annually

NAB increases term deposit rates by 0.25%.

Joining its big four rival in hiking term deposit interest rates this week was NAB, which upped many of its offerings by 25 basis points. 

The changes put NAB’s one year offering within 5 basis points of that of CommBank – a potential variance of $10 on a $20,000 deposit.

Changes to its term deposits include:

Term length

Deposit size

Change

Interest rate

Interest paid

One year

$5,000-$1,999,999

25 basis points

5.00% p.a.

Annually

13-23 months

$5,000-$1,999,999

25 basis points

5.00% p.a.

Annually

One year

$5,000-$1,999,999

25 basis points

4.90% p.a.

Monthly

13-23 months

$5,000-$1,999,999

25 basis points

4.90% p.a.

Monthly

The Mutual Bank hikes term deposits rates by up to 120 basis points 

Finally, the biggest hike of the week came from locally-owned Maitland bank, The Mutual

Interestingly, the bank only demands depositors lock up more than $1,000 to make the most of its competitive rates. 

Take a look at some of the changes made by the customer-owned bank this week:

Term length

Deposit size

Change

Interest rate

Interest paid

Two years

$1,000-$4,999,999

120 basis points

5.20% p.a.

Annually

Three years

$1,000-$4,999,999

120 basis points

5.20% p.a.

Annually

Two years

$1,000-$4,999,999

120 basis points

5.10% p.a.

Monthly

Three years

$1,000-$4,999,999

120 basis points

5.10% p.a.

Monthly

Other movers 

  • Bankwest hiked term deposit offerings by up to 85 basis points
  • Bank Australia increased term deposit rates by up to 15 basis points
  • Rabobank lifts term deposit rates by up to 25 basis points
  • Australian Mutual Bank increases term deposit rates by up to 20 basis points


At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2500031$product[$field["value"]]$product[$field["value"]]More details

Term Deposit - 6 months

    At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details

    Term Deposit - 6 months

      At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details
      • No account keeping fees
      • Interest can be paid to other institution
      • Added loyalty bonus of 0.10%

      Personal Term Deposit - 6 months

      • No account keeping fees
      • Interest can be paid to other institution
      • Added loyalty bonus of 0.10%
      Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

      Term Deposit ($1000-$500001) - 6 months

        At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10008$product[$field["value"]]$product[$field["value"]]More details

        Online Term Deposit - 6 months

          At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

          Online Term Deposit ($5000+) - 6 months

            Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details
            • Start with as little as $1,000
            • Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity
            • You'll automatically get a High Interest Savings Account in your savings portfolio
            • Supporting Aussie farmers with every dollar you save

            Term Deposit ($1000+) - 6 months

            • Start with as little as $1,000
            • Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity
            • You'll automatically get a High Interest Savings Account in your savings portfolio
            • Supporting Aussie farmers with every dollar you save
            Important Information and Comparison Rate Warning

            All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

            Rates correct as of June 23, 2024.View disclaimer