Those who are set to receive a wad of cash for Christmas and want a conservative investment might want to check out a term deposit to stash their cash.
Longer-term rates have come off the boil, and many big bank economists predict RBA cash rate cuts in the latter half of 2023. This could spell an end to the venerated 12-month term deposits over 4% p.a. in a few months' time.
Macquarie, for example, once had some of the sharpest rates in the market, but potentially sensing something afoot, has decreased 12-month rates to a degree where its products aren't even in the top-10 most competitive.
12-month rate movement
Bank Australia
The customer-owned bank focused on green initiatives increased its 12-month rate by 15 basis points to 4.15% p.a.
The minimum investment is $500 and interest is payable at end of term - there is a 10 basis point (0.10%) reduction if savers opt for monthly interest payments.
Northern Inland Credit Union
The small credit union joined the 4% club, increasing its rate by 25 basis points to 4.00% p.a.
The minimum deposit is $5,000 and interest is payable at the end of term.
MyState Bank decreases
The Tasmanian customer-owned bank, the 10th largest mutual in Australia in terms of household deposits, has decreased its 12-month rate.
It decreased by 10 basis points, leaving the 4% club, to now post a rate of 3.90% p.a.
The minimum investment is $5,000 and interest is payable at the end of term.
That said it increased its 9-month rate by 110 basis points.
Top 12-month term deposit rates, 22 December 2022
| Bank | % Rate Per Annum | Minimum Deposit |
| Goldfields Money | 4.40 | $5,000 |
| Gateway Bank | 4.35 | $1,000 |
| Credit Union SA | 4.30 | $5,000 |
| Illawarra Credit Union | 4.30 | $100,000 |
| AMP | 4.20 | $25,000 |
| G&C Mutual Bank | 4.20 | $1,000 |
| Judo Bank | 4.20 | $1,000 |
Top 180-day (6-month) term deposit rates, 22 December 2022
| Bank | % Rate Per Annum | Minimum Deposit |
| Goldfields Money | 4.20 | $5,000 |
| Australian Military Bank | 4.00 | $1,000 |
| Gateway Bank | 4.00 | $1,000 |
| Judo Bank | 3.95 | $1,000 |
| AMP | 3.80 | $25,000 |
