- CommBank bolstered many of its term deposit rates this week by up to 20 basis points
- However, it was Macquarie leading the hikes, increasing its term deposit rates by as much as 140 basis points
- Mutual banks Great Southern Bank and BCU Bank, on the other hand, decreased term deposit rates by up to 30 basis points
Two industry leaders, Commbank and Macquarie, each increased some of the rates on offer for those locking their spare funds up for between three months and five years this week.
It comes ahead of what looks likely to be the first cash rate hike put forward by the Reserve Bank of Australia (RBA) board since June.
The board will meet on Tuesday, with many economists expecting it to put forward a 25 basis point hike after quarterly inflation surprised on the upside.
As of 2 November, ASX traders appear split on their expectations, half tipping a hike and half forecasting a fifth consecutive pause, according to the market operator’s RBA Rate Tracker.
Commonwealth Bank shakes term deposits up by as much as 0.20%
Australia’s largest bank made some notable changes to its offered term deposit rates in recent days.
In what’s likely good news for those considering depositing a lump sum with the bank for a set return, many of the changes it made this week saw it increasing rates.
But that wasn’t all from CommBank.
It also hiked the interest rates charged to those holding many of its credit cards this week and revealed a new zero-interest finance offering for the purchase of solar panels.
Let’s start with its fresh term deposit special offers, available from Thursday, 2 November:
|
Term length |
Change |
Interest rate |
|
12 months to 23 months |
-5 basis points |
4.75% p.a. |
|
24 months |
+20 basis points |
5.00% p.a. |
On top of that, CommBank made changes to its standard term deposit rates, including:
|
Term length |
Change |
Interest rate |
|
24 months to 33 months (annual interest payment) |
+5 basis points |
4.00% p.a. |
|
24 months to 33 months (semi-annual interest payments) |
+5 basis points |
3.95% p.a. |
|
24 months to 33 months (monthly interest payments) |
+5 basis points |
3.90% p.a. |
Macquarie Bank hikes term deposits by as much as 1.40%.
Another major bank making changes to its term deposit interest rates this week was Macquarie.
It also shook things up with its home loan interest rates this week, hiking them by as much as 36 basis points.
When it came to term deposits, however, Macquarie upped its returns by as much as 1.40%.
Not to mention, the 5.05% p.a. rate now on offer to those locking funds away for a 12 month period with the bank is among the market’s most competitive term deposits.
|
Term length |
Change |
Interest rate |
|
Three Months |
+10 basis points |
4.80% |
|
Four months |
+10 basis points |
4.80% |
|
Six months |
+15 basis points |
4.85% |
|
Nine months |
+25 basis points |
4.95% |
|
One year |
+25 basis points |
5.05% |
|
Two years |
+110 basis points |
5.00% |
|
Three years |
+140 basis points |
5.00% |
|
Four years |
+140 basis points |
5.00% |
|
Five years |
+135 basis points |
5.00% |
All the above rates are for deposits wherein interest is paid at maturity (for terms under one year) or annually (for terms of one year or over).
Great Southern Bank and BCU Bank decrease term deposits by up to 0.30%
It wasn’t such positive news out of mutual banks Great Southern Bank and BCU Bank this week – they each lowered their term deposit rates by as much as 30 basis points.
Over at Great Southern Bank, changes were made to some of the rates on its term deposits of 12 months and under.
|
Term length |
Change |
Interest rate |
|
Three months (interest paid on maturity) |
-30 basis points |
4.20% p.a. |
|
Six months (interest paid on maturity) |
-20 basis points |
4.60% p.a. |
|
Nine months (interest paid on maturity) |
-30 basis points |
4.60% p.a. |
|
One year (interest paid on maturity) |
-10 basis points |
4.85% p.a. |
|
Three months (monthly interest payments) |
-30 basis points |
4.10% p.a. |
|
Six months (monthly interest payments) |
-20 basis points |
4.50% p.a. |
|
Nine months (monthly interest payments) |
-30 basis points |
4.50% p.a. |
|
One year (monthly interest payments) |
-10 basis points |
4.75% p.a. |
Meanwhile, ‘banana coast’ institution BCU Bank slashed the rates on offer on a few of its three month term deposits.
Cuts include:
|
Term length |
Change |
Interest rate |
|
Three months (special offer for those aged 55 or over)(monthly interest payments) |
-30 basis points |
4.35% p.a. |
|
Three months (monthly interest payments) |
-30 basis points |
4.25% p.a. |
|
Three months (interest paid on maturity) |
-30 basis points |
4.35% p.a. |
Other movers
Other institutions also made smaller changes to the term deposit rates on offer.
Firstmac increased the rates offered on some of its term deposit products by up to 20 basis points this week.
The non-bank lender’s term deposits are issued by Goldfields Money, an authorised deposit-taking institution (ADI).
Meanwhile, Rabobank shook up its term deposit offerings by as much as 11 basis points.
Image by Josh Appel on Unsplash.
