CommBank, Westpac subsidiaries slash special offer TD rates

Analysts polled by the ASX as part of its rate tracker on 24 August ascribed only a 12% chance of an RBA cash rate hike at its September meeting.

Check out the most significant rate changes in the TD space:

CommBank

CommBank reduced its special offer rates this week by 5bps. The changes only apply to 12- and 18-month TDs. Below are the changes:

CommBank Special Offer TD rate changes – 25 August

Term	Change	Rate
12 months – Special Offer	-5bps	4.80% p.a.
18 months – Special Offer	-5bps	4.80% p.a.

CommBank’s Special Offer TD products above have a minimum deposit of $5,000.

Westpac Subsidiaries

Westpac’s subsidiaries also trimmed their special offer rates by up to 15bps. The changes apply to special TD rates being offered by St. George Bank, BankSA, and Bank of Melbourne.

Westpac Subsidiaries Special Offer TD rate changes – 25 August

Term	Change	Rate
12 months – Special Offer (end-of-term payments)	-15bps	4.75% p.a.
12 months – Special Offer (monthly payments)	-15bps	4.75% p.a.

The special offer rates are for TDs with a minimum deposit of $1,000.

AMP Bank

AMP Bank rolled out minor cuts to its 5- and 7-month TDs.

AMP Bank TD rate changes – 25 August

Term	Change	Rate
5 and 7 months (min. deposit of $5,000)	-5bps	4.90% p.a.
5 and 7 months (min. deposit of $25,000)	-5bps	4.80% p.a.

These changes follow the more spread-out increases AMP Bank made last week.

Arab Bank Australia

Arab Bank Australia made rate cuts in its TDs. Here are the major changes:

Arab Bank Australia TD rate changes – 25 August

Term	Change	Rate
5 months	-50bps	4.10% p.a.
6 months	-20bps	4.50% p.a.
9 months	-25bps	4.50% p.a.
1 Year	-20bps	4.60% p.a.

The TD products above have a minimum deposit of $2,000.

Firstmac

AMP Bank rolled out minor cuts to its 5- and 7-month TDs.

Firstmac TD rate changes – 25 August

Term	Change	Rate
90 days	-10bps	4.90% p.a.
180 days	-10bps	5.10% p.a.
12 months	-10bps	5.10% p.a.
24 months	-10bps	4.90% p.a.

Firstmac’s TDs mentioned above require a minimum deposit of $5,000.

BCU Bank

BCU Bank made several cuts across its TD products. Here are some of the biggest changes:

BCU Bank TD rate changes – 25 August

Term	Change	Rate
6 months – 55 Plus Investments	-15bps	4.60% p.a.
6 months – Regular Income TD	-15bps	4.50% p.a.
9 months – Regular Income TD	-45bps	4.45% p.a.
3 months – Standard TD	-30bps	4.35% p.a.
6 months – Standard TD	-15bps	4.60% p.a.
9 months – Standard TD	-45bps	4.55% p.a.

BCU Bank’s 55 Plus Investments have a minimum deposit requirement of $5,000. For Regular Income and standard TDs above, the minimum deposit is set at $1,000.

Bank First

Bank First also slashed some of its TD rates this week. These recent cuts apply to its 1-Year Regular Income and standard TDs.

Bank First TD rate changes – 25 August

Term	Change	Rate
1 Year Regular Income	-5bps	4.75% p.a.
90 days – Standard TD	-5bps	4.60% p.a.
120 days – Standard TD	-5bps	4.60% p.a.
1 Year – Standard TD	-5bps	4.85% p.a.

The 1 Year Regular Income TD product has a minimum deposit of $5,000 while the standard TD has a minimum requirement of only $500.

Bankwest

There were also some decreases in Bankwest TD rates this week. The cuts, however, only apply to 9-month TDs. Here are the changes:

Bankwest TD rate changes – 25 August

Term	Change	Rate
9 months – Gold TD	-10bps	4.90% p.a.
9 months – Online TD	-10bps	4.90% p.a.

The minimum required deposit amounts are $5,000 for the Gold TD and $1,000 for the Online TD.

Bank of Sydney

Bank of Sydney joined the trend, cutting its TD rates by up to 50bps. These decreases apply are for both Business and Regular TDs.

Bank of Sydney TD rate changes – 25 August

Term	Change	Rate
1 month – Business and Regular TDs	-50bps	1.25% p.a.
3 months – Business and Regular TDs	-50bps	3.50% p.a.
6 months – Business and Regular TDs	-50bps	3.50% p.a.
9 months – Business and Regular TDs	-25bps	3.75% p.a.

Bank of Sydney’s Business and Regular TDs have a minimum deposit of $1,000.

BOQ

BOQ lowered its rates for its Term Deposit Premier Investment product. The changes only apply to TDs with end-of-term and monthly payments.

BOQ TD rate changes – 25 August

Term	Change	Rate
6 months	-10bps	4.70% p.a.
9 months	-10bps	4.80% p.a.
12 months	-10bps	4.90% p.a.

The rates for TDs with monthly payments are 10bps lower than those mentioned above.

TD Rate increases – 25 August

Despite the prevailing trend of rate reductions among providers, some still rolled out increases in their TD rates over the past week. Here are some of the major movers:

Provider – TD Product	Change	Rate
Macquarie, 1-Year Regular TD	+5bps	4.90% p.a.
Bank Australia, 12-month Regular TD	+15bps	4.95% p.a.
12 months	-10bps	4.90% p.a.
Horizon Bank, 12-month Regular TD	+10bps	4.85% p.a.
Credit Union SA, 6-month Term Investment	+15bps	5.15% p.a.

Photo by kamon_saejueng on Canva.

Find out the latest set of banks cutting their TD rates, 25 August