Take NAB and CommBank, for example.
The former cut term deposit rates by as much as 50 basis points this week while the latter dropped its special offer by 10 basis points.
ANZ, AMP, and Macquarie Bank were also among those reducing interest offered on new term deposits, cutting rates by as much as 60 basis points.
All that came despite no data suggesting the Reserve Bank of Australia (RBA) is more likely to cut the cash rate in the coming months than it previously was.
In fact, the minutes from the central bank’s December meeting seemingly drove more market participants to expect a February hike.
Meanwhile, InfoChoice's database has revealed average term deposits of one year or less increased over the first three weeks of December.
The average rate on a six month deposit rose 17 basis points to 4.86% p.a. in that time.
Simultaneously, the average 12 month deposit's rate lifted 12 basis points to 4.92% p.a. while the average rate on a three-year deposit dropped 11 basis points to 4.78% p.a.
NAB cuts term deposit rates by up to 50 basis points
Leading the big four's term deposit cuts this week was NAB.
It slashed rates on its 12- to 24-month deposits by as much as half a percentage point.
Those signing on for a 12-month term deposit, paying annually, through the bank can now expect to receive a 4.90% p.a. interest rate (down 10 basis points week-on-week).
If you’re hunting for a term deposit of between 13- and 24-months, NAB now offers a 4.50% p.a. rate, paying annually (down 50 basis points week-on-week).
CommBank slashes special offer on 12- & 24-month deposits
Meanwhile, CommBank cut its special offer on term deposit products for the second week in a row, this time by 10 basis points.
The bank now promises a 4.90% p.a. return on a 12-month term deposit, with interest paid annually.
Additionally, its special offer on two-year deposits has been dropped to 4.70% p.a., with interest paid annually.
ANZ cuts term deposit rates for businesses
The final member out of the trio of big four banks dropping term deposit rates this week slashed those offered to one particular type of customer: Businesses.
ANZ cut its rate offered on Business Notice Term Deposits by up to 50 basis points.
Those signing on for a 12-month Business Notice Term Deposit paying interest annually will now receive a 4.70% p.a. return – down 30 basis points.
If you’re considering an 18-month Business Notice Term Deposit, paying annually, the bank now offers a 4.00% p.a. interest rate – down 50 basis points week-on-week.
AMP & Macquarie drop term deposit rates by up to 60 basis points
Other majors making term deposit rate moves this week included Macquarie and AMP.
Macquarie Bank
The former slashed the rates it offers on deposits of six months to five years, with interest paid annually (or end of term, for those under one year) by between 5 and 25 basis points.
Those signing on to a Macquarie six-month term deposit can now hope to receive a rate of 4.80% p.a.(down 5 basis points).
Meanwhile, those eying a three-, four-, or five-year deposit can expect a 4.40% p.a. rate (down between 20 and 25 basis points).
AMP
This week also saw AMP taking the scissors to its term deposit rates.
Though, the bank also announced it will hike its Saver account’s interest rate to 5.40% p.a. in February.
The biggest cut made by AMP saw the rate of its two-year term deposit of up to $24,999, paying interest annually, sliced 60 basis points to 4.60% p.a.
Though, the bank still offers a 5.10% p.a. rate to those signing on to a 12-month term deposit, with interest paid at the end of term (down 15 basis points week-on-week).
Other movers
Other banks shaking things up in term deposit land include, for the fourth consecutive week, Judo Bank.
It made yet another cut to its 12-month term deposit, dropping the rate offered on that paying interest annually to 5.20% p.a. (down 5 basis points).
Not all that long ago the product boasted a market-leading, 5.35% p.a. return.
These institutions also dropped select term deposit rates this week:
- Horizon Bank cut by 10 basis points
- Firstmac cut by 10 basis points
But it wasn’t all bad news, as these banks hiked rates on term deposits:
- Hume Bank hiked by up to 50 basis points
- Beyond Bank hiked by 10 basis points
- Bank Australia hiked by 10 basis points
Rounding it out, Bankwest hiked some term deposit rates by as much as 75 basis points while cutting others by up to 45 basis points.
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