ING, the Dutch-owned online bank, revealed its new rate of 5.10% p.a. for amounts of $10,000 or more invested for six months on Tuesday.
It was a 15-basis point jump on the old rate and was the only adjustment made to the bank’s term deposit offerings, as follows:
| Term Length | Amount | New Rate (% Change) | Interest Paid |
|---|---|---|---|
| Six months | $10,000 - $5 million | 5.10% p.a. (+0.15) | End of term |
Perhaps it was aimed at pipping Heartland Bank’s curious six-month rate of 5.09% p.a.
ING also struck after former market leader Judo Bank cut 10 basis points from its long-standing market-leading six-month rate of 5.15% p.a. last week, taking it to 5.05% p.a.
But Heartland still holds the highest rate offered on the market, at 5.15% p.a. for a nine-month deposit.
See also: Compare high-interest term deposits
Suncorp cuts rates up to 65 bp
But so much for the spirit of giving.
Early Friday, Suncorp played Scrooge, lowering a raft of its term deposit rates, some by up to 65 basis points.
The first batch to drop was its shorter-term rates: three, six, nine-month and one-year terms.
The three-month rates took the biggest hit, plunging by 65 basis points, dropping to 3.9% p.a. for amounts between $5,000 to under $100,000 and 3.95% p.a. for amounts between $100,000 to under $1 million, interest paid end of term.
Here's a look at some of Suncorp's new rates for end-of-term interest payments:
The rates are lower again for more frequent interest payments.
Then, shortly after, Suncorp delivered further rate cuts for its longer-term term deposit rates.
This time, the cuts weren't as deep - up to 20 basis points - but have still taken a slice off the old rates, as follows:
| Term | Amount | New rate (% change) | Interest paid |
| 18 months | $5,000-under $100,000 | 3.90% p.a. (-0.20) | Annually |
| 18 months | $100,000-under $1 million | 3.95% p.a. (-0.20) | Annually |
| 2 years | $5,000-under $100,000 | 3.8% p.a. (-0.10) | Annually |
| 2 years | $100,000-under $1 million | 3.85% p.a. (-0.20) | Annually |
| 3 years | $5,000-under $100,000 | 3.8% p.a. (-0.10) | Annually |
| 3 years | $100,000-under $1 million | 3.85% p.a. (-0.10) | Annually |
| 4 years | $5,000-under $100,000 | 3.8% p.a. (-0.10) | Annually |
| 4 years | $100,000-under $1 million | 3.85% p.a. (-0.10) | Annually |
| 5 years | $5,000-under $100,000 | 3.8% p.a. (-0.10) | Annually |
| 5 years | $100,000-under $1 million | 3.85% p.a. (-0.10) | Annually |
Again, rates are lower for interest paid more frequently.
Suncorp's highest term deposit rate remains its six-month rate at 4.85% p.a. for all amounts - down from 4.90% p.a.
Rabobank cuts 9-month and 1 year TD rates
Joining the rate cutters this week was another Dutch-owned bank, this one heading the other way to its market-leading peer.
Rabobank trimmed up to 20 basis points off its one year rates, as follows:
| Term Length | Amount | New Rate (% Change) | Interest Paid |
|---|---|---|---|
| 1 year | $1,000 - $2 million | 4.55% p.a. (-0.20) | Annually |
| 1 year | $1,000 - $2 million | 4.50% p.a. (-0.19) | Semi-annually |
| 1 year | $1,000 - $2 million | 4.47% p.a. (-0.20) | Quarterly |
| 1 year | $1,000 - $2 million | 4.46% p.a. (-0.19) | Monthly |
It also cut 10 basis points off its nine-month term deposit rate, dropping it to 4.70% p.a. for the same deposit, with interest paid end of term.
The bank's highest term deposit offering remains its six-month rate, at 4.90% p.a. with interest paid at maturity.
Military Bank lifts up to 25 bp
Australian Military Bank, catering for defence personnel, lifted its top rate to 4.95% p.a. for some of its six-month term deposit products where interest is paid end of term.
It was among a series of 25-basis point rate jumps for six-month terms while 12-month terms saw more modest five-basis point increases, as follows:
| Term Length | Amount | New Rate (% Change) | Interest Paid |
|---|---|---|---|
| Income Plus - 6 months | $1,000 - $250,000 | 4.85% p.a. (+0.25) | Monthly |
| Income Plus - 12 months | $1,000 - $250,000 | 4.70% p.a. (+0.05) | Monthly |
| Investment Plus - 6 months | $1,000 - $250,000 | 4.95% p.a. (+0.25) | End of term |
| Investment Plus - 12 month | $1,000 - $250,000 | 4.80% p.a. (+0.05) | Annually |
| Teen Plus - 6 months | $500 - $250,000 | 4.95% p.a. (+0.25) | End of term |
| Teen Plus - 12 months | $500 - $250,000 | 4.80% p.a. (+0.05) | Annually |
Credit Union SA bets each way
Credit Union SA unveiled a bold new 5% six-month term deposit rate for amounts over $1,000 with interest paid end of term this week.
It’s now the mutual bank’s highest rate offering after a hefty 15 basis points was taken off its once-leading nine-month rate, dropping it from 5.10% p.a. to 4.95% p.a.
The bank also made a big 120-basis point cut to is five-month rate and dropped its one-year rate by a more modest 20 basis points.
The changes are outlined below:
| Term Length | Amount | New Rate (% Change) | Interest Paid |
|---|---|---|---|
| 5 months | $1,000 - under $100 million | 4.00% p.a. (-1.20) | End of term |
| 6 months | $1,000 - under $100 million | 5.00% p.a. (+1.00) | End of term |
| 9 months | $1,000 - under $100 million | 4.95% p.a. (-0.15) | End of term |
| 1 year | $1,000 - under $100 million | 4.70% p.a. (-0.20) | End of term |
Arab Bank cuts term deposit rates
Finally, Arab Bank Australia took 10 basis points off its three-month term deposit rates, taking them to 4.25% p.a. across the board for amounts of $10,000 to $500,000.
Arab Bank’s highest offering is 4.80% p.a. for the same amounts deposited for six months, with interest paid at maturity.
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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.
Provider | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 1000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
SMSF Term Deposit - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 25000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 1000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposits - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 25000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit ($25,000+) - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 5000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 5000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Macquarie Bank Term Deposit (<$1,000,000) - 6 months | |||||||||||||
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Harry O'Sullivan
William Jolly
Staff Writers
