CBA joins other majors in term deposit rate plunge

Term deposit rates were already well on the downturn but a wild week on financial markets has seen all four big banks take the knife to their rates.

Commonwealth Bank of Australia followed the lead of its peers although ANZ's focus was on business deposit rates this week.

Of the big banks, ANZ, the smallest of the four, now offers the highest personal term deposit rate of 4.50% p.a. for eight months - although chances are that may not last too long.

Here's a snapshot of the big four's best term deposit rates:

Bank	Best rate (term)	Deposit amount	Interest paid
ANZ	4.50% p.a. (8 months)	$5,000-under $2m	At maturity
NAB	4.25% p.a. (7 months)	$5,000-under $2m	At maturity
Westpac	4.30% p.a*. online/ 4.20% p.a.* in branch (11 months) *For existing Westpac customers only	$5,000-$2m	At maturity
CommBank (limited time offer)	4.20% p.a. (10 months)	$5,000-under $2m	At maturity

TDs' time in the sun over

Before we get into the nitty-gritty of the week's many rate movements, it's fair to say the glory days of term deposit returns of 5%-plus are well gone.

New data from the Reserve Bank of Australia shows real returns (taking inflation into account) are now below zero on some deposit products.

The figures show term deposit rates across all maturities averaged 3.20% p.a. in March, down from 3.25% p.a. in February.

One-year deposit rates fell to 4.00% p.a. from 4.10% p.a. the previous month.

You don't have to be an economist to see the writing on the wall but here's investment company Global X's senior product and investment strategist Marc Jocum with his take on the outlook for term deposit products.

"Historically, banks have adjusted term deposit rates ahead of RBA moves to protect their net interest margins [a bank measure of profitability] so we may only be at the start of a downward trend in term deposit rates."

With share markets thrown into chaos with the US tariff mayhem this week and term deposit returns looking decidedly lacklustre, Mr Jocum said income-focused investors are "in a pickle".

"Australians may need to consider their high allocations to cash investments," he said.

Now, let's get on with the week's activities in the term deposit market.

CBA joins the fray

CommBank joined Westpac in cutting its Special Offer rate by 30 basis points this week, while a swathe of its other rates also saw drops of between five and 30 basis points.

Here's a look at CommBank's new rates for amounts between $5,000 and under $50,000 - and you'll notice there's nothing with a 4 in front:

Term	New rate (% change)	Amount deposited	Interest paid
3 months	2.85% p.a. (-0.1)	$5,000-under $50,000	End of term
4 months	3.05% p.a. (-0.05)	$5,000-under $50,000	End of term
5 months	3.10% p.a. (-0.10)	$5,000-under $50,000	End of term
6 months	3.15 (-0.10)	$5,000-under $50,000	End of term
7 months	3.30% p.a. (-0.15)	$5,000-under $50,000	End of term
8 months	3.30% p.a. (-0.20)	$5,000-under $50,000	End of term
9 months	3.35% p.a. (-0.20)	$5,000-under $50,000	End of term
10 months	3.80% p.a. (-0.30)	$5,000-under $50,000	End of term
11 months	3.45% p.a. (-0.30)	$5,000-under $50,000	End of term
12 months	3.85% p.a. (-0.20)	$5,000-under $50,000	Annually
13-17 months	3.85% p.a. (-0.20)	$5,000-under $50,000	Annually
18-23 months	3.70% p.a. (-0.25)	$5,000-under $50,000	Annually

The rates jump by five basis points for amounts between $50,000 and under $2 million.

Westpac group cut special offer rate

Westpac's Special Offer 11 month term deposit rate for existing customers also took at 30 basis point hit.

The new rate of 4.20% p.a. is for in-branch customers but those opening or renewing online can get 4.30% p.a., both with interest paid at maturity.

The offer applies across the Westpac group: St George Bank, Bank of Melbourne, and BankSA.

NAB cuts old top rate by 1%

National Australia Bank deposed its former top rate of 4.50% p.a. for eight months with a hefty 100 basis point cut this week.

In its place, it's installed a new top rate of 4.25% p.a., lifting its seven month rate by 75 basis points.

It's also shaved 10 basis points off a host of its shorter-term rates, as follows:

Term	New rate (% change)	Amount deposited	Interest paid
4 months	3.05% p.a. (-0.10)	$5,000-under $2m	End of term
5 months	3.15% p.a. (-0.10)	$5,000-under $2m	End of term
6 months	3.30% p.a. (-0.10)	$5,000-under $2m	End of term
7 months	4.25% p.a. (+0.75)	$5,000-under $2m	End of term
8 months	3.50% p.a. (-1.00)	$5,000-under $2m	End of term
9 months	3.50% p.a. (-0.10)	$5,000-under $2m	End of term
10 months	3.60% p.a. (-0.10)	$5,000-under $2m	End of term
11 months	3.60% p.a. (-0.10)	$5,000-under $2m	End of term

Judo chops TD rates

The plucky challenger bank is a fixture atop the best rates leaderboard but it's sliced up to 40 basis points off its personal, business, and SMSF products this week.

Judo slips out of top spot for with its new best offering of 4.80% p.a. for six months - a 10 basis point cut on the old market leading 4.90% p.a.

Here's a look at Judo's new rates:

Term	New rate (% change)	Amount deposited	Interest paid
6 month	4.80% p.a. (-0.10)	$1,000-$2m	End of term
9 month	4.65% p.a. (-0.20)	$1,000-$2m	End of term
1 year	4.50% p.a. (-0.25)	$1,000-$2m	End of term
2 years	4.30% p.a. (-0.25)	$1,000-$2m	Annually
3 years	4.20% p.a. (-0.25)	$1,000-$2m	Annually
4 years	4.20% p.a. (-0.35)	$1,000-$2m	Annually
5 years	4.25% p.a. (-0.30)	$1,000-$2m	Annually

The rates drop by 10 basis points for monthly payments.

Unlike many of its bigger bank competitors, Judo's term deposit rates still all begin with a 4.

Rabobank cuts up to 40 bp off longer-term rates

Rabobank is often among the top rate contenders and its best rate got a 10 basis point boost this week to 4.50% p.a. for six months.

But it was all downhill from there, with its two and three year rates taking the biggest hits.

Here are some of Rabobank's new rates:

Term	New rate (% change)	Amount deposited	Interest paid
6 months	4.50% p.a. (+0.10)	$1,000-$2m	End of term
9 months	4.20% p.a. (-0.10)	$1,000-$2m	End of term
1 year	3.95% p.a. (-0.35)	$1,000-$2m	Annually
2 years	3.70% p.a. (-0.40)	$1,000-$2m	Annually
3 years	3.80% p.a. (-0.40)	$1,000-$2m	Annually
4 years	4.15% p.a. (-0.35)	$1,000-$2m	Annually
5 years	4.30% p.a. (-0.35)	$1,000-$2m	Annually

Rates drop for semi-annual, quarterly, and monthly payments.

Other rate droppers

• Bank of Queensland has cut up to 30 basis points from its Premier Investment term deposit rates, offering a best rate of 4.50% p.a. for six months, a 15 basis point drop.
• BoQ-owned ME Bank is offering a top rate of 4.60% p.a. for six months, also a 15 basis point drop.
• ING has adjusted its term deposit offerings, cutting some rates by up to 25 basis points. But its best rate - 4.50% p.a. for six months - has seen a 10 basis point lift. 
• Bank of Sydney has trimmed five basis points from its still eye-catching top rate of 4.80% p.a. for six months. Its three month rate has also seen a 20 basis point cut to 4.60% p.a.
• Bank Australia has dropped term deposit rates by up to 25 basis points. Its best rate is now 4.60% p.a. for six months, a 10 basis point drop. 
• MOVE Bank has gone the chop on its fixed term deposits, slashing its 12 month rate by 45 basis points to 4.05% p.a. Its best rate is 4.90% p.a. for four months, a five basis point drop.
• MyState Bank has taken up to 30 basis points off its online and regular term deposit rates. Its best rate is now 4.60% p.a. for six months (for both online and regular), a 15 basis point drop.
• Hume Bank has cut up to 30 basis points off a range its term deposit rates this week. Its new best rate is its special offer of 4.40% p.a. for a 100-day term.
• BCU Bank has taken up to 15 basis points off its standard, regular income, and 55 Plus Investment deposits. Its best new rate is 4.60% p.a. for five months.
• BankVic has cut 30 basis points from its 12 month Regular Income term deposit rates along with its 12 month (120) term deposit rate. Its new best rate is 4.45% p.a. for six months, a 25 basis point cut.

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