This week many term deposit rate changes took effect off the RBA's cash rate decision last Tuesday.
Most noteworthy were three majors- CBA, NAB and ANZ - as well as formidable challengers such as Suncorp Bank, of which ANZ announced it would acquire earlier this year.
While other majors were more explicit in their announcements following the RBA's cash rate decision, NAB said its interest rates are constantly under review.
For the purposes of brevity, the following will detail increases made to one-year term deposit rates with interest paid at maturity where possible.
CBA term deposit increases
CommBank increased its one-year rate by 135 basis points to 3.30% p.a.
The minimum deposit is $5,000.
NAB term deposit increases
NAB increased its one-year rate by 10 basis points to 3.35% p.a.
Minimum deposit is $5,000.
ANZ term deposit increases
ANZ increased its 11-12 month 'Advance Notice' term deposit rate by 15 basis points to 3.50% p.a.
Minimum deposit is $5,000.
ANZ's Advance Notice products require 31 days' notice to withdraw funds early, unlike its other term deposits.
Suncorp term deposit increases
Suncorp increased its one-year rate by 35 basis points to 3.55% p.a.
The minimum deposit is once again $5,000.
Bankwest term deposit increases
CBA-owned Bankwest increased its one-year rate by 45 basis points to 3.45% p.a.
The minimum deposit is $1,000.
Customer-owned banks' increases
The one-year space was headlined by Community First increasing by 35 basis points to 4.00% p.a.
The minimum deposit however is $50,000.
People's Choice also joined the 4% club, increasing by 70 basis points to 4.00% p.a. with a $5,000 minimum deposit.
Other customer-owned banks to increase in the one-year space included:
Newcastle Permanent: Up 15 basis points to 3.65% p.a. (min deposit $1,000)
Beyond Bank: Up 25 basis points to 3.45% p.a. (min deposit $2,000)
BankVic: Up 50 basis points to 3.45% p.a. (min deposit $5,000)
Qudos Bank: Up 55 basis points to 3.65% p.a. (min deposit $5,000)
Top Five One-Year Term Deposit Interest Rates
|Institution||Interest Rate % Per Annum||Min Deposit|
The past week has seen a bit of a shake-up in the one year space. Previously Judo Bank reigned supreme, and frequently tussled with the likes of Macquarie Bank and AMP for top spot.
Now, the neobank has slipped to third as some customer-owned banks have stepped up.
However, you can't expect Judo Bank to rest on its heels for long in the quest for deposit dollars.
Since the RBA began increasing the cash rate in May, Judo Bank has increased the value of household deposits on its books by nearly 50%.
From the end of April through to the end of August (the most up-to-date data from APRA), Judo went from $2.09 billion in household deposits to $3.13 billion.