Meanwhile, a subsidiary of one of the Big Four banks has joined the 5.00% p.a. club.
With no major news shaking the market in the past few days, only a few term deposit providers were keen to adjust rates.
Who can blame them for taking a wait-and-see approach?
Recent data flows have been mixed - we have weak consumption on the one hand and stickier than expected inflation on the other.
Factor in the tight labour market and strong retail sales, and you've got a mixed bag that puts even the RBA at the edge of its seat.
Term depositors may be silently (or not) wishing for second-quarter inflation to spike to drive an RBA cash rate hike.
However, despite the hawkish language of the RBA in June, the meeting minutes showed that the rate-setting committee was in fact reluctant to hike further given weak output growth.
The economic team at ANZ is fully priced the Reserve Bank will keep the cash rate lower for longer even if the Q2 headline inflation accelerated 1.1%, and trimmed mean by 0.9%.
Well, let's see. In the meantime, here are the latest term deposit movements this week.
G&C Mutual Bank drops top term deposit rates
In a blow to term depositors shopping around, G&C Mutual has dropped its top rate on one-year TD down from 5.40% p.a. to 5.10% p.a. paid annually.
The former market leader in the term deposit space on one-year terms has relinquished its title to Heartland Bank which currently offers 5.35% p.a.
G&C Mutual Bank currently settles on sixth spot, tied with ING.
The bank has also stepped down from the podium in the 9-month space, after dropping from the top spot with 5.30% p.a. returns at maturity to 5.05% p.a.
This week's adjustments have propelled MOVE Bank and Heartland Bank to the top of the heap in the 9-month TD market.
|
Term length |
New rate (change) |
Deposit size |
Payment frequency |
|
9 Months |
5.00% p.a. (-25 bps) |
$1,000 - $99,999,999 |
Monthly |
|
9 Months |
5.05% p.a. (-25 bps) |
$1,000 - $99,999,999 |
End of term |
|
1 year |
5.05% p.a. (-30 bps) |
$1,000 - $99,999,999 |
Monthly |
|
1 year |
5.10% p.a. (-30 bps) |
$1,000 - $99,999,999 |
End of term |
Bank of Sydney term deposit rates further move south
Bank of Sydney has further dropped the rates on short-term deposit products.
The bank's 9-month term deposit has left the 5.0% p.a. mark following a 25 basis point cut that left it at 4.75% p.a.
Its 3- and 6-month TD rates were also down to 4.65% p.a. and 4.75% p.a., respectively.
It took nine weeks of several rate cuts to bring Bank of Sydney's 3-month and 6-month term deposits down from their previous peaks, 5.00% p.a and 5.25% p.a.
Bank of Sydney's best rate of 5.20% p.a. is available through its 7-month term deposit product, which also saw a 5 basis point cut.
Investing the minimum amount of $1,000 today in the bank's top term deposit rate will yield $30.33 interest earnings by February 2024, or $30,333 if you have $1 million lying around that you can lock away for seven months.
That's before any tax, of course.
|
Term length |
New rate (change) |
Deposit size |
Payment frequency |
|
3 months |
4.65% p.a. (-10 bps) |
$1,000 - $1,000,000 |
End of term |
|
6 months |
4.75% p.a. (-5 bps) |
$1,000 - $1,000,000 |
End of term |
|
7 months |
5.20% p.a. (-5 bps) |
$1,000 - $1,000,000 |
End of term |
|
9 months |
4.75% p.a (-25 bps) |
$1,000 - $1,000,000 |
End of term |
Gateway Bank levels with other 3-month TD providers
Gateway Bank has left its status as the sole market leader in the 3-month term deposit space after a 5 basis point cut puts it on the level of five other banks.
Following this week's adjustments, the current top rate in the three-month term deposit space is 5.00% p.a., offered by Gateway Bank, MOVE Bank, and four banking divisions of Teachers Mutual Bank Limited.
Depositors need at least $1,000 to invest in Gateway's term deposit product, capped at $500,001.
Bankwest term deposit rates move north
Commonwealth Bank subsidiary Bankwest has made a play for the one-year term deposit market after hiking rates this week.
The bank has applied as much as 25 basis point boosts on its one-year standard and Gold term deposits, bringing its rates up to 5.00% p.a.
This puts Bankwest's TD 35 basis points shy of current market leader Heartland Bank.
To get set up for a Bankwest term deposit, depositors need at least $1,000 and a linked transaction account.
Meanwhile, customers can begin earning interest on the Gold term deposit with at least $5,000.
|
Term length |
New rate (change) |
Deposit size |
Payment frequency |
|
12 months |
4.89% p.a. (+24 bps) |
$1,000 - $10,000,000 |
Monthly |
|
12 months |
4.91% p.a. (+24 bps) |
$1,000 - $10,000,000 |
Quarterly |
|
12 months |
4.94% p.a. (+25 bps) |
$1,000 - $10,000,000 |
Semi-annually |
|
12 months |
5.00% p.a. (+25 bps) |
$1,000 - $10,000,000 |
Annually |
Other movers this week:
- Credit Union SA hikes 2-year term deposit by 80 basis points to 4.80% p.a.
- IMB increases term deposit rates by 10 basis points
- llawarra Credit Union ups term deposits by up to 120 basis points; top rate at 5.10% p.a. for one-year TD
Photo by Kostiantyn Li on Unsplash
