CommBank's TD cuts were perhaps made, knowing they would be overshadowed by its 2024 financial year results, not much product news gets past us.
CBA cut some rates by as much as 60 basis points, the details of which you can view in the link above.
Elsewhere, it was a pretty benign week. There is seemingly little motivation for banks to offer juicy rates or outdo each other in term deposit land week after week.
Inflation is hot, yes, but other figures like the wage price index, and the labour force, point to a gradual softening of the economy.
The RBA maintains its hawkish tone on rates not being cut this year, but that also means there probably won't be a hike.
This leaves banks in a netherworld, happy to maintain the status quo. Aside from media hysteria, at least this gives time for households to make sense of their finances.
Judo Bank takes the heat out of its TD rates
TD lovers will be familiar with the Judo brand by now, typically one of the market leaders and favoured for its no-bull approach to its products.
However, cuts through the year mean its rates have really come off the boil - this week's moves add to that.
This week it reduced its 12-month rate by another five basis points, which doesn't sound like much, but 'death by a thousand cuts' rings true here.
It's now 5.05% p.a. and wasn't too long ago it was 5.30% p.a.
The minimum deposit is $1,000 which is lower than most providers, and the maximum is $2 million.
Interest is payable at the end of term, however there is the option to receive interest monthly at the expense of a 10 basis point reduction in the interest rate.
Products for SMSFs and businesses also had their rates cut by the same amount.
Rabobank rubs the shine off longer-term rates
Rabobank was previously the market leader for 4- and 5-year term deposits, with rates north of 5.00% p.a.
This week, it made sure to see the end of that nonsense, with sizeable bites taken out of the rates.
| Term | Rate % p.a. (Change) |
| 1 Year | 4.60% (-0.40) |
| 2 Years | 4.25% (-0.25) |
| 3 Years | 4.25% (-0.25) |
| 4 Years | 4.50% (-0.50) |
| 5 Years | 4.60% (-0.50) |
These products have interest payable annually. The minimum deposit is $1,000 and the maximum is $2 million.
Six- and 9-month rates were also cut by 20 basis points; ditto for longer-term products with more frequent interest payments, with interest rate reductions for the more frequent payments.
MOVE Bank breaches 5% barrier
Brisbane-based Railways Credit Union - aka MOVE - made moves on some term deposit products, this week by up to 20 basis points.
It wasn't all good news, however, with a few cuts as well as hikes.
| Term | % Rate p.a. (Change) |
| 3 Months | 4.85% (-0.05) |
| 5 Months | 4.95% (+0.05) |
| 6 Months | 5.00% (-0.20) |
| 9 Months | 5.15% (-0.15) |
| 11 Months | 5.10% (+0.10) |
| 12 Months | 5.00% (-0.10) |
The minimum deposit on these is $5,000 while the maximum is $2 million, with interest payable at the end of term.
The 12 month term also has a monthly interest payment option, at the expense of a 10 basis point reduction in the interest rate.
The Mac makes some hearty hikes
Based in the Macarthur NSW region - southwest of Sydney - The Mac made 50 to 70 basis point hikes on a few of its products.
| Term | % Rate p.a. (Change) |
| 6 Months | 4.50% (+0.70) |
| 9 Months | 4.50% (+0.70) |
| 12 Months | 5.00% (+0.50) |
These products have a minimum deposit size of $5,000 and a maximum of $500,000.
What's interesting is that on the 12-month product, rates are now the same whether you choose interest payments at maturity, bi-annually, quarterly, or monthly.
Theoretically, as term deposits have simple interest, you'd be better off selecting a more frequent interest payment and putting that interest in another investment or savings account that compounds.
This may smooth over the opportunity cost lost by having funds locked away for 12 months.
Other moves
- Bankwest cuts rates by up to 40 basis points
- Credit Union SA varies rates by up to 90 basis points
- BCU cuts 5-month rates by 15 basis points
- Great Southern Bank reduces rates by 10 to 15 basis points
- Bank Australia cuts rates by up to 45 basis points
- Bank of Sydney cuts rates by up to 85 basis points
- MyState Bank varies rates by up to 285 basis points
Photo by magnet.me on Unsplash
