NAB has joined fellow Big Four banks Westpac and CommBank in cutting term deposit rates in anticipation of a lower interest rate environment.
The country's second-largest bank (by market cap) has recently moved its forecast for the start of RBA rate cuts to an earlier date, from May 2024 to February 2024, similar to ANZ and Westpac.
While such a move isn't unprecedented, NAB's revision was somewhat unusual as so far in this tightening cycle, forecasts have generally been pushed back rather than brought forward.
Just months ago, all four major banks predicted rate cuts to begin this year, until they all pushed into 2025, except for CommBank which is still pencilling in a 2024 start to rate cuts.
Back to the matter at hand, term deposit rates have mostly slipped further down this week.
Though there are a few rate increases worth noting.
NAB drops the axe on term deposit products
NAB unveiled its newly dropped term deposit rates days after revising its RBA rate cut forecast to an earlier date.
Up to 20 basis points have been shaved off across a raft of the bank's TD products, spanning terms from 3 months to 5 years.
NAB's 8-month term deposit, which was boosted during its previous round of cuts in August, wasn't spared this time, falling from 4.80% p.a. to 4.75% p.a. - the bank's current top rate.
Here are some of the newly adjusted rates from the bank.
| Term | New rate (change) |
|---|---|
| 3 Months | 3.15% p.a. (-10 bps) |
| 6 Months | 3.50% p.a. (-10 bps) |
| 9 Months | 3.80% p.a. (-20 bps) |
| 12 Months | 4.40% p.a. (-10 bps) |
| 24 Months | 3.80% p.a. (-20 bps) |
The minimum deposit is $5,000 and the maximum is $2 million.
Interest earnings are paid at the end of term, while those exceeding 12 months are paid annually.
Macquarie makes a few cuts and a few boosts
Macquarie Bank is back on the chopping block after two consecutive weeks of boosting some of its term deposits in September.
Australia's fifth-largest bank has brought the rates on its popular terms down 10 basis points this week.
| Term | New rate (change) |
|---|---|
| 6 Months | 4.80% p.a. (-10 bps) |
| 9 Months | 4.60% p.a. (-10 bps) |
| 12 Months | 4.60% p.a. (-10 bps) |
Macquarie's 3-month TD was spared from the latest cuts, carrying the bank's current top rate on offer of 4.95% p.a.
At the risk of sounding like those guys who read too much into details, Macquarie's actions suggest it doesn't foresee rate cuts happening this year after boosting its short-term TDs.
A hefty 205 basis point increase was applied to the bank's 1-month term deposit, bringing the rate up to 2.10% p.a.
The 2-month TD received a 125 basis point boost to land on the 2.10% p.a. as well.
Macquarie requires a minimum deposit of $5,000. The maximum deposit amount tops at $1 million.
MOVE Bank adjusts term deposit rates
Customer-owned MOVE Bank has made some varying moves this week.
A flurry of rate cuts transpired this week, wherein up to 25 basis points were shed from its deposit products.
Amid the declines, MOVE has boosted its 5- and 8-month terms, bringing the rates up to the 5% p.a. range, which is now becoming increasingly rare.
Here are some of the noteworthy term deposit rates available through the Brisbane-based bank.
| Term | New rate (change) |
|---|---|
| 5 Months | 5.05% p.a. (+15 bps) |
| 6 Months | 4.85% p.a. (-10 bps) |
| 8 Months | 5.00% p.a. (+10 bps) |
| 9 Months | 4.75% p.a. (-10 bps) |
| 12 Months | 4.75% p.a. (-5 bps) |
Deposit size ranges from $5,000 to $2 million, with interests payable at the end of term.
Other term deposit rate movements
- Rabobank has docked up to 25 basis points from its term deposit rates on terms starting as 12 months, while simultaneously boosting its 6-month TD by 10 basis points to 4.0% p.a.
- Bank of Sydney slashed 3- to 13-month term deposit rates up to 35 basis points.
- Teachers Mutual Bank and UniBank cut 10 basis points from 6-month term deposits.
- Australian Unity lowered 6- and 9-month regular and SMSF TDs by 15 basis points.
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