- Judo Bank regains spot among the market's leaders - but probably not for long
- Firstmac increases term deposit interest rates by up to 55 basis points
- Westpac and three subsidiaries bolster their special offer to 5.00% p.a.
- AMP lifts term deposit rates by as much as 35 basis points
Indeed, the market will soon have a new leader, with ING announcing plans to increase its 12-month term deposit interest rate to 5.30% p.a.
Until then, Judo Bank has reinstated itself as a market leader, bolstering its term deposit rates by as much as 20 basis points this week.
With many economists at odds over whether the RBA will hike again this cycle, such rates might be the best on offer for some time.
Though, there is plenty of potential for another cash rate hike next year.
NAB group chief economist Alan Oster is expecting another increase to 4.60%, most likely in February off the back of December’s quarterly inflation figures.
Economists at the remaining big banks aren’t so sure, with CommBank experts expecting 4.35% to mark this cycle's peak and those at Westpac and ANZ currently abstaining from an explicit call.
Judo Bank reinstates itself as market leader (for now)
Judo Bank has retaken the mantle as a market leader, alongside Bank of Sydney and AMP, offering a 5.25% interest rate on its term deposits of 12 months and over.
That rate is available to depositors receiving interest annually or at maturity.
However, Judo Bank’s crown will be taken by ING when changes to its 12 months term deposit rate to 5.30% take effect on Tuesday 14 November.
|
Term length |
Change |
Interest rate |
|
Three months |
15 basis points |
4.80% |
|
Six months |
15 basis points |
5.05% |
|
Nine months |
20 basis points |
5.10% |
|
One year |
20 basis points |
5.25% |
|
Two years |
15 basis points |
5.25% |
|
Three years |
15 basis points |
5.25% |
|
Four years |
15 basis points |
5.25% |
AMP hikes term deposit rates by up to 35 basis points
Joining Judo Bank in increasing term deposit rates this week was fellow current market leader AMP Bank.
It increased many of its term deposit rates by up to 35 basis points, bolstering that of its two year term deposit to 5.25% p.a. – level with its one year offering.
The below rates are offered on term deposits providing interest annually.
|
Term length |
Deposit size |
Change |
Interest rate |
|
18 months |
$5,000-$24,999 |
15 basis points |
5.05% |
|
Two years |
$5,000-$24,999 |
35 basis points |
5.20% |
|
18 months |
$25,000-$4,999,999 |
15 basis points |
5.10% |
|
Two years |
$25,000-$4,999,999 |
35 basis points |
5.25% |
Westpac & Co increase term deposit rates by as much as 25 basis points
Big four bank Westpac and three of its subsidiaries, St George Bank, BankSA, and Bank of Melbourne, have bolstered the special rate available on term deposits of between 12 and 23 months to 5.00% p.a.
The increased rate is available for a limited time and available to customers opening or renewing a term deposit of between $5,000 and $5 million.
Those taking advantage of the offer can receive interest monthly or annually.
They can also realise an additional 10 basis point p.a. return if they open or renew their facility online.
|
Bank |
Term length |
Change |
Interest rate |
|
Westpac |
12 months |
25 basis points |
5.00% |
|
St George Bank |
12 months |
25 basis points |
5.00% |
|
BankSA |
12 months |
25 basis points |
5.00% |
|
Bank of Melbourne |
12 months |
25 basis points |
5.00% |
Firstmac bolsters rates by as much as 55 basis points
Firstmac has bolstered the interest rates on offer for many of its term deposits, each with interest paid at maturity.
Firstmac’s term deposits are issued by Goldfields Money - a subsidiary of BNK Bank - an authorised deposit-taking institution (ADI).
Changes include:
|
Term length |
Change |
Interest rate |
|
One month |
25 basis points |
4.25% |
|
Two months |
55 basis points |
4.55% |
|
Three months |
15 basis points |
4.85% |
|
Six months |
10 basis points |
5.05% |
|
One year |
10 basis points |
5.05% |
|
Two years |
50 basis points |
4.50% |
Other movers
Community First hiked many of its term deposit interest rates this week, one by as much as 125 basis points.
The mutual bank now offers a 4.25% p.a. interest rate to those locking their funds away for between six and 11 months, with interest paid at maturity.
It also bolstered a limited special offer it provides to new customers entering a one year term deposit by 25 basis points to 5.25% p.a. – putting it in line with the current market leaders.
Australian Military Bank also hiked term deposit rates, increasing those of its Investment Plus offerings by 15 basis points.
That sees its one year term deposit boasting a 5.05% p.a. interest rate.
On the other end of the spectrum, G&C Mutual lowered many of its term deposit rates by as much as 25 basis points, while MOVE Bank cut rates by as much as 30 basis points.
Though, the latter bank did also increase the rate on its 11 month term deposit product by 10 basis points to 5.00% p.a.
Image by micheile henderson on Unsplash.
