This is despite RBA governor Michele Bullock pouring cold water on any chatter about an incoming cash rate cut, as she and her monetary policy board left the cash rate on hold at 4.35% on Tuesday.
You'd be forgiven for thinking that the RBA holding strong would lead to providers increasing term deposit rates, or at least pausing the maniacal cuts.
But nope.
Though there were a few bright spots this week.
Westpac term deposit rate changes
| Term | New % Rate p.a. (Change) |
|---|---|
| 11 Months Special Offer | 4.65% (-0.05) |
Just the one change from the major bank this week, following on from CBA from earlier in the week, which made a large series of changes.
Westpac removed its previous special offer and now has a new one, which is 5 basis points lower.
This is for deposit sizes between $5,000 and $5 million. Interestingly the rate is the same whether you opt for at-maturity or monthly interest payments.
Westpac subsidiaries St George, Bank of Melbourne, and BankSA all removed their 12-month special offer rates of 4.80% p.a. as well.
Judo Bank term deposit rate changes
| Term | New % Rate p.a. (Change) |
|---|---|
| 3 Months | 4.95% (+0.05) |
| 6 Months | 5.10% (+0.10) |
| 2 Years | 4.55% (-0.15) |
| 3 Years | 4.40% (-0.20) |
| 4 Years | 4.40% (-0.20) |
| 5 Years | 4.40% (-0.20) |
A strong position taken by Judo this week, boosting rates on shorter terms, perhaps indicating the bank doesn't expect a change to the cash rate in the near term.
Its chief economic adviser, Warren Hogan, continues to maintain the RBA needs to increase the cash rate again to truly stamp out inflation.
Judo also remains one of the dwindling few that offers a rate north of 5% p.a.
I see you know your Judo well.
Judo's products are for deposit sizes of $1,000 to $2 million with interest paid at maturity; slight reductions in the interest rate occur if one opts for a more frequent payment.
Other moves
- Bank of Us cuts longer-term rates by as much as 35 basis points
- Bank First cuts short-term and 12-month rates by up to 10 basis points
- Bank of Sydney takes sword to 3-month rate
- Bank of Queensland cuts 3- 6- and 9-month rates by 5 basis points
- Newcastle Permanent & Greater Bank cut 6- and 12-month rates by up to 20 basis points
- Regional Australia Bank cuts gamut of rates by up to 40 basis points
- HSBC cuts 1- and 2-year rates by up to 80 basis points, boosts 3-month rates by 50bps
Interestingly, a large portion of these banks also reduced rates on fixed home loans this week.
Photo by Thao Lee on Unsplash
