Term deposit rate activity is generally a good glimpse into banks' forecasts for further RBA rate activity.

A couple of days ago RBA governor Michele Bullock said more of the inflation ledger is being driven by domestic demand, and it's no longer an internationally, supply chain-driven problem.

"A more substantial monetary policy tightening is the right response to inflation that results from aggregate demand exceeding the economy’s potential to meet that demand," she said on Wednesday night.

This led to some economists to shore-up their rate hike forecasts.

"If you just read the first half of her speech...you would be thinking there was at least one, if not two, more rate rises coming down the pipe," said Sally Auld, chief investment officer at JBWere.

Market rumblings that the RBA is not done will prick the ears of deposit holders, who will be eager to see better returns.

This week, Judo and Bank of Sydney were the more notable movers among many; the two join ING at the top of the 12 month pecking order.

For the purpose of brevity we'll pay particular attention to 12 month rates.

Bank of Sydney

Bank of Sydney's 12 month rate is now 5 basis points higher at 5.30% p.a. - just shy of its June peak of 5.50% p.a. when it seemed like the only RBA course of action was to hike.

For business deposits, this notably represents a 130 basis point increase. 

The minimum deposit is $1,000, up to $1 million.

Judo Bank

Judo Bank increased its 12 month rate by 5 basis points to 5.30% p.a. with interest paid at end of term.

There are minor reductions in the rate if savers opt for more frequent interest payments.

Notably its 5-year rate is the same, though savers will be waiting half a decade to see their interest paid.

With many economists forecasting RBA rate cuts from late 2024, savers could come out ahead if this forecast comes true.

The minimum deposit on these products is $1,000, up to $1 million.

Other notable movers

These movements pertain to 12 month rates with interest paid at the end of term, where possible.

Institution Rate & Movement Deposit Size
Australian Unity 5.10% p.a. (+20bps) $5,000<
Teachers Mutual Bank (and subsidiaries)* 5.05% p.a. (+20bps) $5,000 to $500,000
Gateway Bank 5.20% p.a. (+25bps) $1,000 to $500,000
Firstmac 5.15% p.a. (+10bps) $5,000 to $5 million
Move Bank 5.15% p.a. (+25bps) $5,000 to $2 million
ME Bank 5.10% p.a. (+15bps) $5,000 to $2 million
ANZ 5.00% p.a. (+25bps) $5,000 to $100,000

*Edvest member-only products


Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • If you are over 55 you can take advantage of special rates
  • $0 monthly account fee
  • Guaranteed rate of return

Term Deposit (Platinum Plus 55+) - 12 months

  • If you are over 55 you can take advantage of special rates
  • $0 monthly account fee
  • Guaranteed rate of return
At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • Guaranteed rate of return
  • Manage your term deposit online
  • $0 monthly account fee

Term Deposit - 12 months

  • Guaranteed rate of return
  • Manage your term deposit online
  • $0 monthly account fee
At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10008$product[$field["value"]]$product[$field["value"]]More details

Online Term Deposit - 12 months

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

    Term Deposit ($25k-$5m) - 12 months

      Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

      Term Deposit ($1000+) - 12 months

        Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details

        Term Deposit - 12 months

          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

          Image by user702203 on Freepik