In the lead up to the Reserve Bank's cash rate decision next week, a number of banks have increased interest rates on term deposits.
Macquarie Bank now has the top rate among banks in Infochoice's database for one-year term deposits, boosted by 5 basis points to 3.65% p.a.
It overtook Judo Bank, which cut its one-year rate by 5 basis points down to 3.60% p.a.
Other movements this week include:
The eighth-largest customer-owned bank in terms of assets increased term deposit rates from three months to two years by up to 25 basis points.
For example, the nine-month rate is now 2.75% p.a. with a minimum deposit of $5,000 and interest payable at end of term.
The two-year rate is now up to 3.35% p.a. provided the saver deposits a minimum $50,000 and opts for interest payable annually.
The mutual bank originally created for Qantas employees boosted its one-year term deposit rate by 10 basis points to 3.10% p.a.
Minimum deposit is $5,000 and interest is payable at the end of term.
Other terms' rates from three months to two years were boosted by up to 25 basis points.
Top term deposit rates
For interest payble at the end of term, the top five one-year term deposit rates include:
|Rank||Provider||Interest Rate||Min Deposit|
|1||Macquarie Bank||3.65% p.a.||$5,000|
|2||G&C Mutual||3.60% p.a.||$1,000|
|3||AMP Bank||3.60% p.a.||$25,000|
|4||Judo Bank||3.60% p.a.||$1,000|
|5||Arab Bank||3.50% p.a.||$50,000|
Activity was more subdued than previous weeks as questions are raised as to how much longer the RBA can continue its "tougher rhetoric" according to Westpac chief economist Bill Evans.
"We expect the [Reserve Bank] Board will decide to slow the pace of increases to 25 basis points from the October meeting," Mr Evans said.
"This second stage of the tightening process, with consecutive 25 basis point increments, is expected to extend out to February next year with the rate peaking at 3.35%.
"At that point we expect that it will become evident that the Australian economy is clearly slowing with clear evidence of continuing deterioration as the series of rate hikes and high inflation weigh on households and business."
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