This week, several big players in the term deposit space increased their interest rates, as the needle moves ever-closer to 4% p.a. in the one-year space, and 5% p.a. in the five-year space.
There are now three banks with one-year term deposit rates starting with a 4: Judo Bank, Community First, and People's Choice.
Judo spent one week outside of the top spot in the one-year space as these two customer-owned banks usurped the neobank.
On Thursday, Judo increased its one-year rate by 20 basis points to 4.10% p.a. with a minimum deposit of $1,000 and interest paid at maturity.
At the other end of the spectrum, the five-year rate was increased by 10 basis points to 4.95% p.a.
On Wednesday AMP increased its one-year term deposit rate by 10 basis points to 3.90% p.a.
This is for a minimum deposit of $25,000 with interest paid at maturity; there is a slight rate reduction if savers have a smaller deposit or want their interest paid at another interval.
Macquarie Bank also increased its one-year term deposit rate by 10 basis points to 3.90% p.a. with interest paid at maturity - minimum deposit is $5,000.
Other banks to increase term deposit interest rates this week include: Bank of Sydney, Community First, Northern Inland Credit Union, Horizon Bank, RACQ Bank, Greater Bank, Australian Mutual Bank, Heritage Bank, and Citi.
As of September, the average one-year term deposit rate with a deposit of $10,000 was 1.50% p.a. according to Reserve Bank data.
Top One-Year Term Deposit Rates - 21 October
|Bank||% Rate Per Annum||Minimum Deposit|