Commonwealth Bank made another round of cuts to a raft of its term deposit rates on Wednesday, including a five-basis point cut to its special offer 4.75% p.a. for amounts between $5,000 and $1,999,999 invested for nine months with interest paid annually.
Westpac followed it up the next day with the same cut to its special offer rate to 4.65% p.a.
That’s for amounts between $5,000 and $5 million invested for 11 months with interest paid monthly or at maturity for deposits opened or renewed in-branch.
Those opening or renewing online will get 4.75% p.a.
The big two are still adjusting their rates after both took the sword to their term deposit rates over the past couple of months.
CommBank was the first to move in August with Westpac holding out for a few weeks before joining the market plunge in term deposit rates earlier this month.
Let’s check this week’s market moves (largely downward).
CBA further cuts TD rates
Six weeks after its major cuts, CommBank made more adjustments to its rates, slashing many by 25 basis points but also some much lower.
Here’s a selection of some of the new rates for amounts between $5,000 and $49,999.99:
| Term | New rate (change %) | Interest paid |
|---|---|---|
| 3 months | 3.1% p.a. (-0.10) | End of term |
| 6 months | 3.35% p.a. (-0.10) | End of term |
| 9 months | 4.25% p.a. (0.05) | End of term |
| 11 months | 3.85% p.a. (-0.10) | End of term |
| 12 months | 4.35% p.a. (+0.35) | Annually |
| 24-33 months | 3.70% p.a. (-0.10) | Annually |
| 34-35 months | 3.70% p.a. (+0.15) | Annually |
But amid the falls, CBA also lifted its 12-month and 12-17-month rates up to 40 basis points for amounts between $50,000 and $1,999,999.
Yet, those rates are still lower than those for nine-month terms.
The big bank also took up to 20 basis points off its Business Investment Account term deposits on the same day.
Judo Bank offers 5.1% p.a.
The bank that aims to serve small and medium-sized businesses has made some bold rate rises among a plethora of cuts this week.
Judo Bank is offering a market-leading 5.1% p.a. for personal term deposit amounts between $1,000 and $2 million invested for six months with interest paid end of term – a 10-basis point rise.
It’ll also offer 5% p.a. for interest paid monthly.
Here are some of Judo's new personal term deposit rates for amounts between $1,000 and $2 million:
| Term | New rate (change %) | Interest paid |
|---|---|---|
| 3 months | 4.95% p.a. (+0.05) | End of term |
| 6 months | 5.10% p.a. (+0.10) | End of term |
| 2 years | 4.55% p.a. (-0.15) | End of term |
| 3 years | 4.40% p.a. (-0.20) | End of term |
| 4 years | 4.40% p.a. (-0.20) | End of term |
| 5 years | 4.40% p.a. (-0.20) | End of term |
The rates drop by 10 basis points across the board for interest paid monthly.
Judo is also offering the same rates for its business and SMSF term deposits.
HSBC chops up to 80 bp off 1-year rates
The global bank that originated in Hong Kong around 160 years ago has made some serious cuts to some of its TD rates this week.
HSBC has taken a whopping 80 basis points off its one-year rates for amounts between $5,000 and under $100,000,000.
Here's a selection of the new rates:
| Term | New rate (change %) | Interest paid |
|---|---|---|
| 3 months | 4.50% p.a. (+0.5) | End of term |
| 9 months | 4.30% p.a. (-0.2) | End of term |
| 1 year | 4.20% p.a. (-0.8) | Annually |
| 2 years | 4.00% p.a. (-0.1) | Annually |
HSBC's highest term deposit rate is now 4.50% p.a.
Regional Australia cuts up to 40 bp
The bank that services many parts of northern regional New South Wales has dropped rates across the board.
Regional Australia Bank is still offering 4.90% p.a. for amounts between $1,000 and $500,000 invested for six months with interest paid end of term.
That’s a 10-basis point cut on the old rate, taking it under the 5% mark.
Newcastle banks go lower
The merged Newcastle Permanent and Greater Bank both dropped their TD rates this week by up to 20 basis points.
The best new rate at both banks is 4.75% p.a., a 15-basis point drop, for six-month investments with interest paid end of term.
At Greater Bank, that rate applies to amounts between $5,000 up to $99,999,999.99 while Newcastle Permanent depositors can get the rate for amounts between $1,000 and $1 million.
Other rate movements
- Bank of Queensland has nudged its Premier Investment term deposit rates down another five basis points for a range of shorter terms and between 12 months and two years.
- Bank of Sydney made a far more dramatic statement by cutting its three-month rate on amounts between $1,000 and $1 million by 135 basis points to 3.55% p.a. with interest paid end of term.
- Tasmania’s only customer-owned bank, Bank of us, has taken up to 35 basis points from its Regular Income and Term Investment rates for terms from 10 months to three years.
- Bank First has taken up to 10 basis points off its One Year Regular Income products as well as some of its standard term deposit rates.
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Image by Mathieu Stern on Unsplash
Harry O'Sullivan
Denise Raward
William Jolly
