Following the Reserve Bank of Australia’s rate hike last week, several banks have now rolled out changes to their term deposit rates.
ME Bank kicked off the race to offer 5% p.a. 12-month term deposit rate this week, which was recently followed by Transport Mutual Credit Union and now by Bank of Sydney.
12-month term deposit leaders - 16 June 2023
| Bank | % Rate Per Annum | Minimum Deposit |
| Transport Mutual* | 5.25 | $1,000 |
| ME | 5.00 | $5,000 |
| Bank of Sydney | 5.00 | $1,000 |
| Judo | 4.90 | $1,000 |
| Firstmac/Goldfields Money | 4.85 | $5,000 |
Source: InfoChoice Product Database & Research. Interest paid at maturity unless otherwise stated.
*Special offer for new customers, deposits made from external bank account.
Here are some of the latest and most significant changes to term deposit rates over the week ending 16 June 2023:
Bank of Sydney joins the 5% club
Bank of Sydney heats up the competition by offering a 5% p.a. rate for 12-month term deposit. This was part of the bank’s recent changes to its deposit rates across term lengths.
Bank of Sydney Term Deposit Rates – 16 June 2023
|
Term |
Change |
Interest Rate (% p.a.) |
|
One month |
+20bps |
3.1 |
|
Two months |
+10bps |
3.2 |
|
Three months |
+30bps
|
4.65 |
|
Four months |
+20bps |
4.65 |
|
Five months |
+15bps |
6.75 |
|
Six months |
+10bps |
4.8 |
|
Seven months |
+10bps |
4.8 |
|
Eight months |
+10bps |
4.8 |
|
Nine months |
+15bps |
4.85 |
|
10 months |
+15bps |
4.85 |
|
11 months |
+10bps |
4.85 |
|
12 months |
+25bps |
5 |
|
13 months |
+25bps |
5 |
*The minimum deposit for all term lengths is at $1,000. The payments are made at the end of the term.
CommBank boosts special offer rates
Commonwealth Bank has increased its special rates for seven-, 12-, and 18-month terms by up to 25bps.
Commonwealth Bank Special Offer Term Deposit Rates – 16 June 2023
|
Term |
Payment Frequency |
Interest Rate (% p.a.) |
Change |
|
Seven months
|
Annual |
4 |
+25bps |
|
Semi-annual |
3.95 |
||
|
Monthly |
3.9 |
||
|
12 months |
Annual |
4.55 |
+20bps |
|
Semi-annual |
4.5 |
||
|
Monthly |
4.45 |
||
|
18 months |
Annual |
4.55 |
|
|
Semi-annual |
4.5 |
||
|
Monthly |
4.45 |
*All term deposit tiers above require a minimum deposit of $5,000.
Also read: ME Bank, Transport offers 5% 12-month term deposit
ANZ rolls out 40bps increase for Advance Notice Term Deposit
After increasing its one-year Advance Notice Term Deposit rates last week, ANZ decided to make another hike, this time for four-month term deposit rates.
ANZ Four-month Advance Notice Term Deposit Rates – 16 June 2023
|
Payment Frequency |
Change |
Interest Rate (% p.a) |
|
End of term |
+40bps |
4.2 |
|
Quarterly |
4.19 |
|
|
Monthly |
4.18 |
Bendigo Bank hikes term deposit rates by up to 230bps
Bendigo Bank made the one of greatest increases in term deposit rates this week, increasing its three-month rate by up to 230bps.
Bendigo Bank Term Deposit Rates – 16 June 2023
|
Term |
Change |
Interest Rate (% p.a.) |
|
One month |
+75bps |
1.25 |
|
Two months |
+130bps |
1.9 |
|
Three months |
+230bps |
3 |
|
Five months |
+210bps |
3 |
|
Six months |
+20bps |
4.05 |
|
Seven months |
+190bps |
3 |
|
Eight months |
+190bps |
3 |
|
10 months |
+100bps |
3 |
|
11 months |
+75bps |
3 |
|
Six months (Quarterly and Monthly Repayments) |
+20bps |
4 |
*All tiers require a minimum of 5,000 deposit. Interest paid at maturity unless otherwise stated.
MyState Bank
MyState also rolled out a significant change in its term deposit rates this week. Its four-month rate went up 330bps to 4.6% p.a.
MyState Bank Term Deposit Rates – 16 June 2023
|
Product and Terms |
Change |
Interest Rate (% p.a.) |
|
Income Deposit - 12 months (Monthly Repayments) |
+25bps |
4.55 |
|
Online TD -Two months |
+10bps |
4.7 |
|
Online TD -Two months |
+25bps |
4.75 |
|
Regular TD – Four months |
+330bps |
4.6 |
|
Regular TD – Nine months |
+110bps |
4.7 |
|
Regular TD – 12 months |
+25bps |
4.75 |
* All tiers require a minimum of 5,000 deposit. Interest paid at maturity unless otherwise stated.
Other significant changes
- BOQ increased its term deposit rates for the Premier Investment product line by 25bps. The 12-month term now has a rate of 4.70% p.a.
- Bankwest increased its online term deposit rates to 4.70% p.a (+95bps). The deposit matures in nine months.
- Australian Mutual Bank rolled out up to 25bps increase across its term deposit products.
- Greater Bank made a 30bps increase in its 12-month term deposit rate to 4.50% p.a.
- Newcastle announced a 40bps lift, increasing its 12-month term deposit rate to 4.50%. p.a.
- Hume Bank made some changes across its one-, two-, and three-year term deposit rates, introducing up to 35bps change. The highest term deposit rate in the current set of changes was for its one-year term at 4.40%.
- The Mutual Bank increased its term deposit rates by up to 80bps.
- Suncorp Bank rolled out rate increases of 30bps across its one-year and 7-month term lengths.
- Qudos Bank increased its special offer term deposit rates by up to 25bps.
