- Macquarie hiked term deposit rates by up to 10 basis points this week
- Bank of Sydney lifted its 12-month term deposit rate to near-market-leading levels
- Judo Bank joined in the on action, matching Bank of Sydney's new rate
Consumers rejoiced on Tuesday night when Treasurer Jim Chalmers revealed all households would receive $300 of energy bill relief and Rent Assistance will be upped by 10%.
What most weren’t keeping an eye on was the term deposit market, which took off amid the roadmap for the coming financial year.
Macquarie was perhaps the highest profile mover and shaker, lifting some term deposit interest rates by as much as 10 basis points.
However, there was arguably bigger news from smaller banks Bank of Sydney and Judo Bank.
Term deposit enthusiasts will know those names well, as they’ve spent many moons josteling amongst each other for the term deposit interest rate podium.
Macquarie hikes term deposit rates by 10bp
First things first, though. Not-quite-big-four-bank Macquarie gave deposits a welcome surprise on Wednesday, lifting rates on its four and six month term deposit products.
Those keeping their money with the bank can now realise a 4.8% p.a. rate of return.
That marks a 5 basis point lift on its previous four month rate and a 10 basis point lift on its previous rate for six month deposits.
It still promises an interest rate of 4.65% p.a. on 12 month term deposits.
Bank of Sydney hikes 12 month term deposit rate by 20 basis points
If you’re looking to look funds away for a year, then, Bank of Sydney might be more up your alley.
It hiked the rate on its 12 month term deposits to 5.25% p.a.
That puts it just behind the current market-leading rate: 5.35% p.a. from Heartland Bank (formerly Challenger).
But it wasn’t all good news from the Bank of Sydney.
It also slashed interest rates on some of its shorter term deposits, cutting those of its seven, eight, ten, and eleven month products between 30 and 45 basis points to 4.5% p.a.
Luckily, its six month deposit still boasts a market-leading 5.25% p.a. return.
Judo Bank ups rates by as much as 15 basis points
We said up above that Judo and Bank of Sydney love to jostle for the leading light in the term deposit space, and this week brought both to the table. And what a table.
Judo Bank has now matched Bank of Sydney’s near-market-leading interest rate for 12 month term deposits, lifting its own 15 basis points to 5.25% p.a.
That rate is the same for six and nine month term deposits held at the bank.
The bank also upped those of its three month, two year, and five year term deposits by 10 basis points a pop.
Other movers
- MyState Bank ups term deposit interest rates by as much as 1.5%
- Community First Bank raises rates by 10 basis points
- BCU Bank lifts term deposit rates by up to 1.10%
- Summerland Bank boosts rates by up to 80 basis points
Image by Florian Schmetz on Unsplash
