Home News Latest term deposit rate changes include new products over 5% p.a

Latest term deposit rate changes include new products over 5% p.a

The tide may be shifting in the term deposit market with fresh rate increases over 5% p.a following Judo's new market leading return announced last week.

By Harry O'Sullivan

on 18 Oct 2024

Fact Checked

Latest term deposit rate changes include new products over 5% p.a

We are so back.

These updates have been grim reading for term deposit fans over the past couple of months - the vast majority of banks that offer TDs have wielded the axe since early August.

However, the last fortnight has seen something of a revival, with Macquarie and Heartland Bank joining Judo Bank in starting to hike rates again.

This might be because of bond yields increasing throughout October, a revised outlook for the cash rate or a change in funding strategy, but the why won't matter for TD fans who thought they missed out on a rate north of 5% p.a.

Over the next few weeks we'll find out whether this is a merely an Indian Summer or the start of another surge in TD returns in Australia.

Macquarie hiked 20 bps

Term length	Deposit size	Payment frequency	Interest rate (Change)
Nine months	$5,000-$1,000,000	End of term	4.80% p.a. (+0.20)
One year	$5,000-$1,000,000	End of term	4.80% p.a. (+0.20)

Macquarie has been running wild over the last few days.

Since Monday it has jacked up its savings account rates, hiked fixed home loans and then boosted the introductory savings account rate to 5.50% p.a.

Now, Australia's fifth largest bank has capped things off with a 0.20% increase to nine month and one year term deposit rates.

The highest rate at Macquarie remains 4.95% p.a. on three month terms which is only 5 basis points behind perennial market leaders Judo.

Heartland Bank hiked rates 10 bps

Term length	Deposit size	Payment frequency	Interest rate (Change)
Six months	$25,000-$1,000,000	End of term	4.99% p.a. (+0.10)
Nine months	$25,000-$1,000,000	End of term	5.05% p.a. (+0.10)
One year	$25,000-$1,000,000	End of term	5.00% p.a. (+0.10)
Two years	$25,000-$1,000,000	End of term	4.65% p.a. (+0.10)
Three years	$25,000-$1,000,000	End of term	4.55% p.a. (+0.20)

While Heartland Bank still isn't quite living up to its mission statement to offer 'best in kind' banking products, this latest round of rate increases is certainly a step back in that direction.

Interestingly, Heartland continues to offer its highest rate on nine month terms, rather than shorter terms that have become in-vogue recently.

Credit Union SA varied rates up to 120 bps

Term length	Deposit size	Payment frequency	Interest rate (Change)
Five months	$1,000-$99,999,999.99	End of term	5.00% p.a. (+1.20)
Six months	$1,000-$99,999,999.99	End of term	4.00% p.a. (-0.90)
Three/Four/Five years	$1,000-$99,999,999.99	End of term	3.00% p.a. (-0.50)

Other movers

BCU Bank varied rates up to 90 bps
Community First Bank varied rates up to 20 bps
Hume Bank cut by up to 15 bps

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Looking for a fixed interest investment? Here are some of the top term deposit products on the Australian market right now

Deposit amount

Compare

Provider	Interest rate	Interest frequency	Term	Automatic Rollover	Maturity Alert	Early Withdrawal Available	Minimum Deposit	Joint Application	Online Application	as ofOctober 18, 2024

	4.95^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposits ($5,000 - $500,000) - 6 months
Term Deposits ($5,000 - $500,000) - 6 months More details
	4.85^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Stow it Term Deposit - 6 months
Stow it Term Deposit - 6 months More details
	4.95^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	1000	$product[$field["value"]]	$product[$field["value"]]	More details
	Fixed Term Deposit - 6 months
Fixed Term Deposit - 6 months More details
	4.50^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	1000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 6 months
Term Deposit - 6 months More details
	5.00^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	1000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposits - 6 months
Term Deposits - 6 months More details
	5.15^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	1000	$product[$field["value"]]	$product[$field["value"]]	More details
	Personal Term Deposits - 6 months
Personal Term Deposits - 6 months More details

Online Savings Term Deposit (online) - 12 months

Minimum deposit$1,000

4.55%Interest rate p.a.

12Term

More details

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Picture by Annie Spratt on Unsplash

Harry O'Sullivan

Harry joined Savings in November 2022. With a degree in economics from the University of Queensland, Harry is interested in topics such as inflation and GDP, and is passionate about keeping Australians informed on the external factors that impact their personal finances.

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Latest term deposit rate changes include new products over 5% p.a

Macquarie hiked 20 bps

Heartland Bank hiked rates 10 bps

Credit Union SA varied rates up to 120 bps

Other movers

Term Deposits ($5,000 - $500,000) - 6 months

Term Deposits ($5,000 - $500,000) - 6 months

Stow it Term Deposit - 6 months

Stow it Term Deposit - 6 months

Fixed Term Deposit - 6 months

Fixed Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposits - 6 months

Term Deposits - 6 months

Personal Term Deposits - 6 months

Personal Term Deposits - 6 months

Harry O'Sullivan