The Australian personal finance and economics space is in a series of stasis at the moment, with changes to stage 3 tax cuts the dominant headline.
Aside from that, we're waiting until next week when December 2023 quarter inflation figures come out, which will largely dictate Reserve Bank cash rate movements the week after.
The trend for term deposit rates seems to be down, potentially acting as a crystal ball into future interest rates.
Still, there were some bright spots - i.e. rate hikes - which we will highlight.
Bank Australia cuts 18-month term deposit rate by 15bps
| Term | Interest Rate (Change) | Deposit Size |
| 18 months - paid end of term | 4.90% p.a. (-0.15) | $500 to $1 million |
| 18 months - paid monthly | 4.80% p.a. (-0.15) | $500 to $1 million |
The fourth-largest customer owned bank in terms of assets repriced 18 month term deposits.
Notably, Bank Australia has one of the lowest minimum deposits in the market at just $500.
Move Bank varies a wide array of rates by up to 35bps
| Term | Interest Rate (Change) | Deposit Size |
| 6 Months | 4.95% p.a. (+0.05) | $5,000 to $2 million |
| 9 Months | 4.90% p.a. (-0.10) | $5,000 to $2 million |
| 12 Months | 4.95% p.a. (-0.20) | $5,000 to $2 million |
| 24 Months | 4.75% p.a. (-0.25) | $5,000 to $2 million |
Railways Credit Union - otherwise known as Move Bank - tended to make hikes to short term rates.
Terms anywhere from four to six months were increased, while those longer than this saw decreases.
Terms shorter than 12 months see interest paid at the end of term, while longer ones have a choice of annual or monthly payments; monthly options see a slight reduction in the rates listed above.
Judo continues rate cut crusade
| Term | Interest Rate (Change) | Deposit Size |
| 3 Months - paid end of term | 4.90% p.a. (-0.05) | $1,000 to $1 milion |
| 3 Months - paid monthly | 4.80% p.a. (-0.05) | $1,000 to $1 million |
For at least the second week in a row, Judo has delivered a body drop (Tai otoshi - 体落) to its term deposit products.
Last week cuts encompassed terms from 3 months to 5 years.
This week it was ringfenced to 3 month terms, and business and SMSF term deposits also saw similar rate changes.
Still, at least in the 12 month space Judo is one of the market leaders with a rate of 5.15% p.a.
Macquarie Bank varies 6 and 12 month rates by 5bps
| Term | Interest Rate (Change) | Deposit Size |
| 6 Months | 4.75% p.a. (0.05) | $5,000 to $1 million |
| 12 Months | 4.80% p.a. (+0.05) | $5,000 to $1 million |
Macquarie Bank made a short range of moves this week.
Notably, it bucked the trend of other banks, opting to hike 12 month rates which, market-wide, seem only to have seen rate cuts recently.
Maybe this is a gaze into the crystal ball of rate forecasts at Australia's fifth-biggest bank.
Other institutions to make moves
- Firstmac (white-labelled from Goldfields Money): Reduced its 90-day rate by 10 basis points to 4.80% p.a.
- Horizon Bank: Decreased 6 and 12 month rates by 10 basis points.
- The Mutual: Decreased 2 and 3-year rates with differing interest payment schedules by up to 30 basis points.
Image by VD Photography on Unsplash
