- Judo Bank has slashed its briefly-market leading term deposit interest rate 10 basis points to 5.25% p.a.
- Bank Australia, meanwhile, hiked the rate on its two- and three-year term deposits by 40 basis points
Judo Bank dropped its top term deposit interest rate from 5.35% p.a. to 5.25% p.a. this week, leaving it below those of fellow market leaders Bank of Sydney and ING.
It came amid the final cash rate call of 2023 – the Reserve Bank of Australia (RBA) board decided to hold the rate at 4.35% following November’s 25 basis point hike.
The central bank noted the pause will provide time to assess the impact of last month’s change and the dozen hikes preceding it.
Many experts are now questioning whether we’ve arrived at the peak of the cash rate while some – like economists at NAB – are predicting another hike in February.
While there weren't many changes to Australian banks’ term deposit offerings this week, those that did occur were particularly noteworthy.
Judo Bank reverses course, abandons market-leading rate
Judo Bank has kept term deposit fans on their toes in recent weeks, hiking the rate on its one-year deposit to 5.35% last week before slashing it once more.
The neobank now offers customers 5.25% p.a. on new one-, two-, three-, four- and five-year term deposits paying interest at end of term.
A slightly lower rate of 5.20% p.a. is available for those receiving interest annually, while if you’re after monthly interest payments you might be able to realise a 5.15% p.a. rate.
Bank Australia hikes term deposit rates by 40 basis points
In better news, Bank Australia has bolstered the rate offered on its two- and three-year term deposits.
The bank’s two-year term deposits now offer a 4.90% p.a. interest rate while its three-year term deposits boast a 4.40% p.a. rate – both on deposits paying interest at the end of term.
For depositors looking for monthly interest payments, the bank has also hiked its rates to 4.8% p.a. for a two-year deposit and 4.30% p.a. for a one-year deposit.
It's worth mentioning, the bank offers such rates to customers depositing as little as $500 – half the minimum deposit on offer at Judo Bank, and a tenth of what's often required at major banks.
Image by Samuel Castro on Unsplash.
