More than a month on from the February RBA cut, on Monday morning both Commonwealth Bank and Westpac reduced term deposit rates.

At both banks the highest available rate is on special offer terms - 10 months at CommBank, 11 months at Westpac - and both cut that rate 10 bps to 4.50% p.a.

That brings them in line with NAB, leaving ANZ with the current highest rate of the big four at 4.60% p.a. on its eight month Advance Notice product.

CommBank also cut its standard range of TDs by up to 0.10%, leaving no rate higher than 4.10% p.a.

The major banks have for a while lagged behind TD heavy hitters like Judo Bank (where the top rate is still 4.90% p.a.), but for some this latest cut might have added significance given the next RBA decision is just over a week away.

The February Labour Force numbers "blindsided" many forecasters - although the unemployment rate was steady at 4.1%, the number of employed people dropped by 53,000.

The reason for the rate staying steady is because of the participation rate dropping 0.4 percentage points, contracting the labour supply. 

A softening jobs market arguably supports the case for an April cut, but economists from both banks are still officially predicting a hold at the April monetary policy meeting.

"We don't think the RBA will be swayed by February's labour market data at the April board meeting," CommBank economist Belinda Allen said on Friday.

"We still expect the Board to leave the cash rate on hold and resume normalising [it] in May with a 25 bp decrease."

Westpac economist Ryan Wells concurred it's "unlikely the RBA will read too much" into the labour force data,

The ABS' seasonally adjusted data has also been extremely volatile as the statistician plays catch up on accounting for changing jobs trends.

So, those hoping for another rate cut on their mortgage probably shouldn't read too much into these term deposit return reductions.

As of 21 March, the ASX RBA tracker put the probability of an April hold at 90%.

Top big four term deposit rates

These are the current highest term deposit returns at the big four banks.

The CommBank and Westpac products are special offers, only available to existing customers, while the ANZ Advance Notice product needs at least 31 days' notice for early withdrawals (a normal condition).

Bank Term length Deposit size Rate
CBA 10 months (Special Offer) $5,000-$2m 4.50% p.a. (-0.10)
Westpac 11 months (Special Offer) $5,000-$5m 4.50% p.a. (-0.10)
NAB Eight months $5,000-$2m 4.50% p.a.
ANZ Eight months (Advance Notice) $5,000-$2m 4.60% p.a.

New Commonwealth Bank term deposit rates

These are the new standard term deposit rates at CommBank:

Term length Deposit Size Payment frequency Interest rate change
Five months $5,000-$50,000 End of term 3.20% p.a. (-0.05)
Six months $5,000-$50,000 End of term 3.25% p.a. (-0.10)
10 months $5,000-$50,000 End of term 4.10% p.a. (-0.10)
One year $5,000-$50,000 End of term 3.25% p.a. (-0.05)
Five months $50,000-$2m End of term 3.25% p.a. (-0.05)
Six months $50,000-$2m End of term 3.30% p.a. (-0.10)
10 months $50,000-$2m End of term 4.10% p.a. (-0.10)
One year $50,000-$2m End of term 4.10% p.a. (-0.10)

These products are also available with more regular interest payments in exchange for a slight rate discount.

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          Important Information and Comparison Rate Warning

          All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of March 25, 2025. View disclaimer.

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