- ING increased certain term deposit rates to 5.30% p.a.
- Big banks CommBank and NAB increased rates by up to 30 basis points
- The Mutual Bank hiked term deposit rates by 120 basis points
Indeed, the last seven days have birthed a new market-leader in the term deposit space.
ING increased the rate on its one year term deposits by 30 basis points to 5.30% p.a. – the highest rate on offer from any Aussie bank.
Interested parties would be wise to bear in mind that the current rate of annual inflation sits at 5.4%, meaning such a return isn’t inflation-beating at this point.
Though, the RBA predicts inflation will slow from here on out.
If the central bank’s forecasts prove correct and annual inflation drops to 3.5% by this time next year, those signing up to 5.30% term deposits now may be laughing when their term expires.
ING crowned market-leader with 5.30% p.a. term deposit interest rate
Banking mainstay ING raised eyebrows after the RBA hiked the cash rate by 25 basis points last week, vowing to increase the rate on its one year term deposit to 5.30% p.a.
That hike came into play on Tuesday, along with a 25 basis point increase to the bank’s six month term deposit interest rate.
|
Term length |
Deposit size |
Change |
Interest rate |
Interest paid |
|
Six months |
$10,000-$5,000,000 |
25 basis points |
5.05% p.a. |
End of term |
|
One year |
$10,000-$5,000,000 |
30 basis points |
5.30% p.a. |
End of term |
CommBank joins in, hiking some term deposit rates by 30 basis points
CommBank broke out in front of its big four peers this week, increasing some rates by as much as 30 basis points up to a high of 5.10% p.a. on two year deposits.
Though, the biggest of the banks did drop the special rate offered on new 36 month term deposits opened by personal or self managed super fund (SMSF) customers by 10 basis points to 4.90% p.a.
Other changes include:
|
Term length |
Deposit size |
Change |
Interest rate |
Interest paid |
|
One year |
$5,000-$1,999,999 |
30 basis points |
5.05% p.a. |
Annually |
|
18-23 months |
$5,000-$1,999,999 |
30 basis points |
5.05% p.a. |
Annually |
|
Two years |
$5,000-$1,999,999 |
10 basis points |
5.10% p.a. |
Annually |
|
Three years |
$5,000-$1,999,999 |
-10 basis points |
4.90% p.a. |
Annually |
|
36-47 months |
$5,000-$49,999 |
5 basis points |
4.00% p.a. |
Annually |
NAB increases term deposit rates by 0.25%.
Joining its big four rival in hiking term deposit interest rates this week was NAB, which upped many of its offerings by 25 basis points.
The changes put NAB’s one year offering within 5 basis points of that of CommBank – a potential variance of $10 on a $20,000 deposit.
Changes to its term deposits include:
|
Term length |
Deposit size |
Change |
Interest rate |
Interest paid |
|
One year |
$5,000-$1,999,999 |
25 basis points |
5.00% p.a. |
Annually |
|
13-23 months |
$5,000-$1,999,999 |
25 basis points |
5.00% p.a. |
Annually |
|
One year |
$5,000-$1,999,999 |
25 basis points |
4.90% p.a. |
Monthly |
|
13-23 months |
$5,000-$1,999,999 |
25 basis points |
4.90% p.a. |
Monthly |
The Mutual Bank hikes term deposits rates by up to 120 basis points
Finally, the biggest hike of the week came from locally-owned Maitland bank, The Mutual.
Interestingly, the bank only demands depositors lock up more than $1,000 to make the most of its competitive rates.
Take a look at some of the changes made by the customer-owned bank this week:
|
Term length |
Deposit size |
Change |
Interest rate |
Interest paid |
|
Two years |
$1,000-$4,999,999 |
120 basis points |
5.20% p.a. |
Annually |
|
Three years |
$1,000-$4,999,999 |
120 basis points |
5.20% p.a. |
Annually |
|
Two years |
$1,000-$4,999,999 |
120 basis points |
5.10% p.a. |
Monthly |
|
Three years |
$1,000-$4,999,999 |
120 basis points |
5.10% p.a. |
Monthly |
Other movers
- Bankwest hiked term deposit offerings by up to 85 basis points
- Bank Australia increased term deposit rates by up to 15 basis points
- Rabobank lifts term deposit rates by up to 25 basis points
- Australian Mutual Bank increases term deposit rates by up to 20 basis points
