Macquarie lifts term deposit rates - again

Australia's fifth largest bank has added another five basis points to its six-month term deposit rate after upping its three-month rate to 4.95% p.a. – currently Macquarie's highest term deposit rate – two weeks ago.

Both rates are available for deposits of between $5,000 and $1 million with interest paid end of term.

It marks another boost for Macquarie's six-month rate after a hike in late October, when its nine-month rate was also boosted by five basis points to 4.85% p.a.

Here're Macquarie's current term deposit rates, with the new boost to the six-month rate:

Term	Deposit Size	Payment Frequency	Interest Rate
3 months	$5,000 - $1m	At maturity	4.95% p.a.
6 months	$5,000 - $1m	At maturity	4.90% p.a. (+0.05%)
9 months	$5,000 - $1m	At maturity	4.85% p.a.
1 year	$5,000 - $1m	At maturity	4.85% p.a.

Macquarie's new rates still fall short of the 5.00% p.a. benchmark and well below those offered by market leader Judo Bank – 5.15% p.a. for a six-month term with interest paid at maturity.

See also: 6-month and short-term deposit rates

They're also below the rates currently offered on Macquarie's no-conditions savings account, which features a 5.50% p.a. welcome rate for four months on balances up to $250,000 before reverting to an ongoing variable rate of 5.00% p.a. on balances up to $1 million.

BCU Bank also lifts top rate to 4.90%

The customer-owned BCU Bank has given a nice boost to some of its Standard, Regular Income, and 55-Plus Investment term deposit rates this week, upping some by up to 90 basis points.

Its best new rate on a Standard term deposit is 4.90% p.a. for four-, six- and nine-month terms for amounts between $1,000 and under $1 million with interest paid at maturity.

The six- and nine-month rates were lifted by five and 90 basis points respectively, matching BCU's four-month rate of 4.90% p.a.

Here are the new rates:

Term	Deposit Size	Payment Frequency	Interest Rate (% Change)
Standard - 3 months	$1,000 - under $1m	End of term	4.85% p.a. (+0.55)
Standard - 6 months	$1,000 - under $1m	End of term	4.90% p.a. (+0.05)
Standard - 9 months	$1,000 - under $1m	End of term	4.90% p.a. (+0.90)
Regular Income - 3 months	$1,000 - under $1m	Monthly	4.75% p.a. (+0.55)
Regular Income - 6 months	$1,000 - under $1m	Monthly	4.80% p.a. (+0.05)
Regular Income - 9 months	$1,000 - under $1m	Monthly	4.80% p.a. (+0.90)
55 Plus Investments - 3 months	$5,000 - under $1m	Monthly	4.85% p.a. (+0.55)
55 Plus Investments - 6 months	$5,000 - under $1m	Monthly	4.90% p.a. (+0.05)
55 Plus Investments - 6 months	$5,000 - under $1m	Fortnightly	4.85% p.a. (+0.05)

Other TD rates head lower

Other rate movers on the term deposit market largely shifted downwards this week, with many of the new rates well below those offered by market leaders.

This is despite big bank Westpac having shifted its forecast of a cut in the cash rate from February to May 2025.

It follows NAB, which made the same call last week, although NAB had been more circumspect in previously tipping a first quarter cash rate cut.

Theoretically, this should inspire confidence that higher term deposit rates won't catch out deposit-takers should interest rates fall and they're left to pay out higher amounts to savvy customers.

But banks have their own motivations, including internal business decisions, market factors, and reasons we'll never really know.

Let's check the other market movers.

MyState Bank cuts top rate to 4.80%

The Tassie-based bank has taken 15-basis points off its best term deposit rate, pulling its five-month rate down to 4.80% p.a. for amounts between $5,000 and below $100,000,000 with interest paid at maturity.

The rate applies to both its Online and Regular term deposit products.

MyState's five-month rate now matches its seven-month rate at 4.80% p.a.

Community First Bank cuts best rate to 4.65%

Community First's rates are at the lower end of the market, particularly for amounts under $100,000.

Its new best rate of 4.65% p.a. is for amounts between $100,000 and $1 million invested for 12-23 months with interest paid annually.

This matches its rate for six- to 11-month investments of the same amount with interest paid on maturity.

Its two- and three-year terms took the biggest haircuts, with up to 15 basis points slashed from two-year rates and 25 basis points from three-year rates.

Community First takes an additional 10 basis points off its annual rates for those opting for monthly payments.

Bank of Sydney slashes four-month rate to under 4%

You can always count on Bank of Sydney to make a bold statement with its interest rate adjustments.

It's dropped 60 basis points off its four-month personal and business term deposit rates to 3.90% p.a. for amounts between $1,000 and $1,000,000 with interest paid end of term.

But the bank is still offering 5.10% p.a. for its online-only six-month rate while its online three-month rate of 5.00% p.a. is also a standout.

Both pay interest at the end of term.

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