AMP Bank upped the ante on Friday, boosting its nine-month rates by 25 basis points to a market-challenging 5.10% p.a. for amounts of more than $25,000 and 5.05% p.a. for smaller amounts.
The rate-setters at AMP may have been spurred by Heartland Bank throwing down the gauntlet in the nine-month stakes last week, when the latter bank upped its rate to equal the market-best 5.15% p.a. for amounts between $25,000 and $1 million, with interest paid at end of term.
That rate is matched only by the plucky neobank, Judo, which is offering the same rate for six months.
AMP also lifted its six-month and one-year rates this week, with changes as follows:
| Term Length | Deposit Size | Payment Frequency | New Rate (% Change) |
|---|---|---|---|
| 6 months | $5,000-<$25,000 | End of term | 4.95% p.a. (+0.05) |
| 6 months | $25,000-<$10m | End of term | 5.00% p.a. (+0.05) |
| 9 months | $5,000-<$25,000 | End of term | 5.05% p.a. (+0.25) |
| 9 months | $25,000-<$10m | End of term | 5.10% p.a. (+0.25) |
| 1 year | $5,000-<$25,000 | End of term | 4.95% p.a. (+0.05) |
| 1 year | $25,000-<$10m | End of term | 5.00% p.a. (+0.05) |
No other bonus margins can be applied to the new special offer rates, which are available to customers applying directly to AMP Bank only.
AMP Bank's one-year rates have also shifted for more frequent payment options, as follows:
| Term | Deposit Size | Payment Frequency | New Rate (% Change) |
|---|---|---|---|
| 1 year | $5,000-under $25,000 | Semi-annually | 4.9% p.a. (+0.05) |
| 1 year | $25,000-under $1m | Semi-annually | 4.95% p.a. (+0.05) |
| 1 year | $5,000-under $25,000 | Quarterly | 4.85% p.a. (+0.05) |
| 1 year | $25,000-under $1m | Quarterly | 4.90% p.a. (+0.05) |
| 1 year | $5,000-under $25,000 | Monthly | 4.75% p.a. (+0.05) |
| 1 year | $25,000-under $1m | Monthly | 4.80% p.a. (+0.05) |
It’s perhaps a bold move to increase longer-term rates given the pundits are tipping a mid-year cut to the cash rate - although that’s what many of them were saying this time last year too.
Time will tell.
Mutual Bank hits 5%
The Hunter Valley-based Mutual Bank has also gone big on Friday, lifting its five-month term deposit rates to 5% p.a.
It's a considerable 2.05% jump for deposits between $1,000 and less than $500,000, and a flat 2% jump for amounts between $500,000 and $1 million.
It's also hiked its nine-month rates to 4.7% p.a. for the lesser deposit band and 4.75% p.a. for the higher.
All payments are end of term and outlined as follows:
| Term | Deposit Size | Payment Frequency | New Rate (% Change) |
|---|---|---|---|
| 5 months | $1,000-under $500,000 | End of term | 5.00% p.a. (+2.05) |
| 9 months | $1,000-under $500,000 | End of term | 4.70% p.a. (+0.75) |
| 5 months | $500,000-$1m | End of term | 5.00% p.a. (+2.00) |
| 9 months | $500,000-$1m | End of term | 4.75% p.a. (+0.75) |
BoQ group lift rates by 15 bp
Bank of Queensland and its subsidiary ME Bank have lifted term deposit rates for both six- and nine-month terms.
BoQ’s best new Premier Investment rate is 4.85% p.a. for amounts of between $5,000 and $250,000 invested for six months with interest paid end of term.
The rates drop by 10 basis points for monthly payments, as follows:
| Term | Deposit Size | Payment Frequency | New Rate (% Change) |
|---|---|---|---|
| 6 months | $5,000-$250,000 | End of term | 4.85% p.a. (+0.15) |
| 9 months | $5,000-$250,000 | End of term | 4.80% p.a. (+0.15) |
| 6 months | $5,000-$250,000 | Monthly | 4.75% p.a. (+0.15) |
| 9 months | $5,000-$250,000 | Monthly | 4.70% p.a. (+0.15) |
Meanwhile, the digital-only ME Bank is offering higher rates – 4.90% p.a. for six months and 4.85% p.a. for nine months, as follows:
| Term | Deposit Size | Payment Frequency | New Rate (% Change) |
|---|---|---|---|
| 6 months | $5,000-$2m | End of term | 4.90% p.a. (+0.15) |
| 9 months | $5,000-$2m | End of term | 4.85% p.a. (+0.15) |
MOVE Bank moves lower
The Brisbane-based customer-owned bank was certainly up there with the movers and shakers at one stage but has pulled back its big-ticket rates, now offering none over the 5% mark.
MOVE Bank has sliced 15 basis points off its old best rate of 5.10% p.a. for amounts between $5,000 and $2 million invested for seven months with interest paid end of term.
Its new seven-month rate, which is also the highest it offers, is 4.95% p.a.
Here are the changes to its Fixed Term Deposit products:
| Term | Deposit Size | Payment Frequency | New Rate (% Change) |
|---|---|---|---|
| 5 months | $5,000-$2m | End of term | 4.80% p.a. (-0.25) |
| 6 months | $5,000-$2m | End of term | 4.80% p.a. (-0.05) |
| 7 months | $5,000-$2m | End of term | 4.95% p.a. (+0.15) |
| 8 months | $5,000-$2m | End of term | 4.75% p.a. (-0.25) |
| 11 months | $5,000-$2m | End of term | 4.80% p.a. (+0.05) |
| 12 months | $5,000-$2m | End of term | 4.70% p.a. (-0.05) |
| 12 months | $5,000-$2m | Monthly | 4.60% p.a. (-0.05) |
Northern Inland chops two-year rates
Finally, Northern Inland Credit Union has taken 15 basis points off the full range of its two-year rates, cutting them to 3.70% p.a. for amounts from $1,000 to under $250,000, with interest paid end of term.
The rate drops to 3.45% p.a. for savers who want interest paid monthly.
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Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for a six-month term.
| Bank | Term Deposit | Interest Rate | Interest Frequency | Term | Automatic Rollover | Maturity Alert | Early Withdrawal Available | Minimum Deposit | Maximum Deposit | Notice Period to Withdraw | Account Keeping Fee | Online Application | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.05% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – | |||||||||||||
5.09% p.a. | At Maturity | 6 months | $25,000 | $1,000,000 | – | – | |||||||||||||
5.05% p.a. | At Maturity | 6 months | $1,000 | $0 | – | – | |||||||||||||
5.00% p.a. | At Maturity | 6 months | $25,000 | $10,000,000 | – | – | |||||||||||||
5.00% p.a. | At Maturity | 6 months | $5,000 | $200,000 | – | – | |||||||||||||
4.85% p.a. | At Maturity | 6 months | $5,000 | $1,000,000 | – | – |
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