Westpac leads this week's drops, the last Big Four bank to hold out on cutting its rates following the recent drop in swap rates impacting both home loan and term deposit markets.
In contrast, Macquarie Bank leads this week's outliers, raising rates on select term deposit products.
However, there weren't many doing as Macquarie does.
As in weeks prior, term deposit rates have been on the downturn, with more movements coming in after the ABS national accounts data confirmed on Wednesday that Australia's economy further stalled in the June quarter.
With GDP growth inching up by a meagre 0.2%, the end of the 2023-24 financial year marked the slowest pace of growth - outside Covid pandemic - since the 1991 recession.
While major bank economists believe this will not materially shift the RBA's decision, with the figures falling broadly in line with the central bank's forecasts, the productivity slowdown and increased government spending will likely keep the Board on their toes.
With no indication of a possible rate hike in the near term and swap rates trending lower, we might see more rates heading south.
But a lot can happen in a competitive market; strong term deposit demand and banks vying for a bigger slice of the pie could very well result in a few surprises.
Westpac slashes term deposit rates
In a further blow to term depositors, Westpac has finally joined on the rate-cutting trend that's been going on for weeks.
As much as a 40 basis point cut was applied across a raft of the major bank's deposit products, effectively pushing rates on its non-conditional TDs below the 4% territory, save for the one-year term.
New customers opening a term deposit account with the bank can now expect a maximum return of 4%, which only puts you 20 percentage points ahead of the latest CPI print.
This means you're beating inflation, but just barely.
Meanwhile, Westpac's top rate of 4.80% p.a. remains exclusively available for existing customers opening or renewing an 11-month term deposit online.
The special offer TD carries a fixed 4.70% p.a. special offer rate.
An additional 10 basis point boost applies if the account is opened or renewed online.
Here are some of the recently adjusted rates available for Westpac customers seeking term deposits paying interest at maturity:
| Term | New rate (change) |
|---|---|
| 3 Months | 3.25% p.a. (-25 bps) |
| 6 Months | 3.45% p.a. (-20 bps) |
| 9 Months | 3.80% p.a. (-5 bps) |
| 12 Months | 4.00% p.a. (-25 bps) |
The minimum deposit is $5,000, and the maximum is $2 million.
Bank of Queensland cuts rates on popular terms
Bank of Queensland (BOQ) dropped the rates on its 6- and 12-month term deposits, while simultaneously edging a less popular term higher.
To get these rates, a minimum deposit of $10,000 is required. Interest earnings are paid at the end of term.
| Term | New rate (change) |
|---|---|
| 4 Months | 4.80% p.a. (+5 bps) |
| 6 Months | 4.80% p.a. (-10 bps) |
| 12 Months | 4.65% p.a. (-5 bps) |
These rates are available for deposits ranging from $5,000 to $250,000, with interest paid at the end of term.
ING drops term deposit rates
ING is back on the chopping block, shedding up to 50 basis points from select terms this week.
| Term | New rate (change) |
|---|---|
| 4 Months | 4.85% p.a. (-5 bps) |
| 6 Months | 4.95% p.a. (-10 bps) |
| 11 Months | 4.60% p.a. (-50 bps) |
| 1 Year | 4.95% p.a. (-5 bps) |
| 2 Years | 4.40% p.a. (-10 bps) |
The minimum deposit is $10,000 and the maximum is $5 million.
Bankwest moves rates south
CommBank-owned Bankwest joined in on the cutting action this week, slashing up to 20 basis points across its range of term deposit products.
The cuts were focused on longer-term products, save for the 9-month TD that also got the chop.
Here are some of the noteworthy rates available at Bankwest for a minimum deposit of $1,000:
| Term | New rate (change) |
|---|---|
| 9 Months | 4.70% p.a. (-10 bps) |
| 1 Year | 4.70% p.a. (-15 bps) |
| 2 Years | 3.90% p.a. (-10 bps) |
Interest is paid at the end of term.
Which banks managed to hike rates?
These banks bucked this week's trend, hiking the rates on some its term deposit products.
Macquarie Bank edges short-term deposit rates higher
Macquarie Bank returns for another week of rate adjustments.
Just a week ago, Australia's fifth-largest bank shed some basis points from its longer-term products.
But unlike last week when the focus was cuts on long-term products, the bank delivered a 5 basis point hike across short-term deposits.
| Term | New rate (change) |
|---|---|
| 3 Months | 4.95% p.a. (+5 bps) |
| 4 Months | 4.85% p.a. (+5 bps) |
| 6 Months | 4.85% p.a. (+5 bps) |
The minimum deposit is $5,000 and the maximum is $1 million, with interest payable at the end of term.
AMP Bank squeezes in a few hikes amid rate dumps
Bit of a mixed bag over at AMP Bank this week, after the bank raised its 7-month terms while simultaneously dropping rates on the rest of its products.
A 20 basis point hike was applied on the less popular term, bringing its rates closer to the 5% territory.
Terms ranging from 3 to 12 months, however, received cuts by as much as 42 basis points.
Rates vary depending on the deposit size, but generally, the higher the deposit, the higher the rate it attracts.
For the bank's 7-month term deposit, for example, depositors can get the top rate of 4.90% p.a. if they deposit at least $25,000.
Deposits below that, up to $5,000, will get a much lower 4.85% p.a. interest rate.
Bank of Sydney's 'online-only' 3-mo TD moves closer to 5%
Bank of Sydney increased its online-exclusive deposit on three-month terms by a staggering 135 basis points.
Customers can get an interest rate of 4.90% p.a. if they open a 3-month term deposit with the bank online.
Bank of Sydney's online-only TDs carry the bank's highest rates, with the 6-month term paying 5.05% p.a.
Mutual banks drop term deposit rates
Completing this eventful week for term deposits, more than a handful of customer-owned banks dropped the axe on their products, with cuts left and right across various terms.
- Newcastle Permanent and Greater Bank cut 6 and 12-month term deposit rates up to 15 bps
- The Mutual Bank slashes short and long-term TD rates up to 105 basis points
- MyState Bank cuts 7 and 12-month term deposit rates by 25 bps
- Bank First lowers 9-mo and 1-year TD rates by 10 bps
- BCU Bank cuts 2-year term deposits by 40 bps
- Teachers Mutual Bank and UniBank slash 3-month TD rates by 15 bps
- Australian Military Bank cuts rates by 20 basis points
- Hume Bank drops 1-year term deposit rates by 20 bps
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