The first week of July saw a few handy rate hikes from a handful of institutions just as the Stage 3 tax cuts took effect, leaving average full-time workers about $2,000 better off than last financial year.
Many pundits have linked the tax hike hysteria to increased home loan borrowing power, which is not wrong, but an extra $2,000 in a term deposit at 5.00% over the year could yield an extra $100, before taxes.
A term deposit rate of about 5.00% p.a. across many terms nowadays is the bare minimum you should look for - if your bank doesn't offer this or thereabouts, you can easily find better.
That said, InfoChoice database research for June indicated the average rate for 12-month terms, for example, was 4.80% p.a.
This shows many banks are behind the eight-ball; the market-leaders are pushing beyond 5.20% p.a. with the top rate being G&C Mutual Bank at 5.40% p.a. for 12-month terms.
Here are some banks that made moves this week, as per changes observed in our database.
Macquarie comes back into rate movement washing machine
Just like middle forwards in rugby league describe their job as being in the washing machine, so too can the weekly tumble of term deposit rate movements.
Macquarie Bank came back to the rate movement fray this week for the first time since mid-May.
This is a contrast to earlier in the year with its week-in-week-out term deposit movements, seeking harmony among its loans vs deposits ledger.
Maybe Macquarie now fancies itself as a non-nonsense second-rower.
Nothing too exciting, however, with movements by up to 15bps. The minimum deposit is $5,000 while the maximum is $1 million, with interest on these ones payable at maturity.
| Term | % Rate Per Annum (Movement) |
| 3 Months | 4.90% (+0.10) |
| 4 Months | 4.90% (+0.10) |
| 6 Months | 4.90% (+0.10) |
| 9 Months | 4.95% (+0.15) |
| 1 Year | 4.95% (+0.15) |
ING pushes rates north by up to 15bps
At the start of the week ING moved rates upwards across a few of its products. Interest is payable at maturity unless otherwise noted. Deposit sizes are from $10,000 to $5 million, with both ends a lot higher than other banks.
| Term | % Rate Per Annum (Movement) |
| 90 Days | 4.90% (+0.15) |
| 120 Days | 4.90% (+0.15) |
| 180 Days | 5.10%(+0.05) |
| 1 Year | 5.10% (+0.10) |
Other bank movements
- Beyond Bank boosts rates by up to 20bps on short-term products, now featuring a rate of 5% p.a. on its 7-month product as a special offer.
- Teachers Mutual and subsidiaries boost rates on 6-month terms by 30bps to 4.95% p.a.
- Bank Australia boosts rates by 15bps on 3- and 12-month terms, now 4.85% p.a. and 5.00% p.a. respectively.
- Bank of Sydney increased its 7-month rate by 15bps to 5.25% p.a.
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Photo by Olga Guryanova on Unsplash
