November was a busy month for term deposit rate activity - let's not mention the RBA elephant in the room - with 45 banks in our database adjusting rates.

The average increase, however, was less than the RBA's 25 basis point hike to the cash rate.

It was another big week in term deposit land, as many providers hiked the rates available to those locking their funds away for a set period. 

It comes ahead of the Reserve Bank of Australia (RBA) board’s December meeting on Tuesday. 

The central bank is widely expected to hold the cash rate at 4.35% at its final meeting of 2023, with many experts suggesting the board might consider hiking when it comes together again in February.

For now, numerous banks have hiked their term deposit interest rates, while one cut the rates on offer for new deposits. 

Judo Bank hikes to market-leading 5.35% p.a. 

Not to be outdone by Bank of Sydney and ING – which both recently hiked term deposit rates to a then-market-leading 5.30% p.a. – Judo Bank has stepped back into the ring.

The challenger bank added an extra 10 basis points to its personal term deposit product this week, bringing its top rate to 3.35% p.a. – 5 basis points above those of its competitors.

That rate is available on one, two, and three year term deposits paying out at the end of their term. 

There are slightly lower returns available for term deposits paying out annually.

Meanwhile, those realising monthly repayments from the bank will earn 5.10% p.a. on one year deposits and 5.25% p.a. on two or three year deposits. 

People First Bank makes first moves after announcing new name

This week was a big one for Heritage Bank and People’s Choice as they unveiled their new name following their merger: People First Bank (pictured with CEO Peter Lock below).

Simultaneously, the married duo each hiked their term deposit interest rates by as much as 25 basis points. 

They now both offer a 5.00% p.a. interest rate on one year deposits paying annually – marking a 10 basis point increase – and slightly lower rates on one year terms paying monthly.

They also provide a 4.85% p.a. return on a six month deposit – up 15 basis points – and a 4.15% return on nine, 10, and 11 month deposits – each representing a 25 basis point increase.

PeterLockPeopleFirst.jpg

Suncorp Bank increases term deposit interest rates by up to 40 basis points 

Joining in on the hiking action was Suncorp Bank, increasing term deposit rates by as much as 40 basis points.

The Queensland bank hiked the rate on its one year deposit, paying annually by 20 basis points to 5.05% p.a. However, that’s only available on deposits of more than $1 million.

If you’re depositing between $5,000 and $99,999, you can realise a return of 4.95% p.a. – up 20 basis points – and if your deposit comes in between $100,000 and $999,999, you’ll realise a 5.00% return – also up 20 basis points. 

The 40 basis point increase was implemented on the bank’s 10- and 11-month term deposits, with returns of 3.80% p.a. and 3.88% p.a. respectively. Those rates are on deposits paying interest at the end of their term.

Credit Union SA hikes by up to 1.10%

This week’s largest term deposit interest rate increase was dealt out by Credit Union SA

The Adelaide-based bank hiked the rate on its three-month term deposit product by 110 basis points to 5.10% p.a. 

It also lifted the rate on its one year deposit by 10 basis points to 5.00% p.a. 

Other movers

There was only one bank that dropped its term deposit interest rates notably this week, and that was Newcastle Permanent.

It lowered the rate on its two year deposits by 45 basis points to 4.75% p.a. for those paying out at the end of term, or 4.65% p.a. for those paying interest semi-annually, quarterly, or monthly. 

Other movers this week included: 

  • Macquarie Bank increased term deposit rates by up to 10 basis points
  • BankVic varies its term deposit rates by as much as 75 basis points
  • Australian Military Bank increased the rates on its Income Plus and Investment Plus term deposits by up to 20 basis points
  • Horizon Bank hiked its term deposit interest rates by up to 50 basis points

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