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
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 | |||||||||||||
Picture by Annie Spratt on Unsplash
Denise Raward
Harry O'Sullivan
William Jolly
