As markets around the world continue to price in rate cuts sooner than indicated by RBA boss Michele Bullock, term deposit rates are taking a bit of a pasting.

The cost of funding for Australian banks is getting lower - which has bought blessed relief to many mortgage holders who have seen their rates cut.

For TD fans, this week bought more cuts, with NAB and Macquarie the major names to trim rates, although a couple of notable hikes from MOVE Bank might catch your eye.

NAB cuts rates up to 20 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three months $5,000-$1,999,999 End of term 3.15% p.a (-0.10)
Six months $5,000-$1,999,999 End of term 3.50% p.a (-0.10)
Eight months $5,000-$1,999,999 End of term 4.75% p.a (-0.05)
One year $5,000-$1,999,999 End of term 4.40% p.a (-0.10)
Two years $5,000-$1,999,999 Annually 3.80% p.a (-0.20)

After CommBank and Westpac dropped rates last week, NAB has followed suit, cutting returns on its range of term deposits up to 0.20%.

The strongest rate available at NAB is now 4.75% p.a, in line with the top offering at Australia's two largest banks, although the NAB product is available to all while CommBank and Westpac restrict this rate to existing customers.

ANZ now has the highest available TD rate of the big four, at 4.80% p.a for eight months on its Advance Notice product.

MOVE Bank varies rates up to 25 bps

Term length Deposit size Payment frequency Interest rate (Change)
Five months $5,000-$2,000,000 End of term 5.05% p.a (+0.15)
Six months $5,000-$2,000,000 End of term 4.85% p.a (-0.10)
Eight months $5,000-$2,000,000 End of term 5.00% p.a (+0.10)
Eleven months $5,000-$2,000,000 End of term 4.75% p.a (-0.25)
One year $5,000-$2,000,000 End of term 4.75% p.a (-0.05)

While for the most part, term deposit rate movement has been downward over the past couple of months, there remains a few providers willing to go against the grain.

Last week, TD fan favourites Judo Bank moved six month rates back up to 5.10% p.a, and this time around it's customer owned MOVE Bank bringing spring cheer to those on the hunt for a term deposit.

It's still 5 basis points off the likes of Judo and Gateway Bank (both 5.10% p.a for six months), but at 5.05% p.a MOVE Bank appears to offer the highest rate in the slightly less popular five month market.

A $10,000 investment into a five month TD with MOVE Bank right now would mean an interest payment of just over $168 when it matures at the start of next March.

If you remember year 2 maths, you'll know that means a $100,000 investment could net you over $1,680 come autumn - subject to any tax of course, which you might not have learned in year 2. 

Eight month products were also boosted to 5.00% p.a - also among the market leaders for this term length.

Macquarie varies rates up to 205 bps

Term length Deposit size Payment frequency Interest rate (Change)
One month $5,000-$1,000,000 End of term 2.10% p.a (+2.05)
Two months $5,000-$1,000,000 End of term 2.10% p.a (+1.25)
Six months $5,000-$1,000,000 End of term 4.80% p.a (-0.10)
Nine months $5,000-$1,000,000 End of term 4.60% p.a (-0.10)
One year $5,000-$1,000,000 End of term 4.60% p.a (-0.10)

It's a pretty sick headline, but the 205 basis point increase to Macquarie's one month TD rate isn't quite as exciting when you consider the rate previously was 0.05%.

Two month rates also got a similar boost, but there were cuts to six months, nine months and one year.

Still, at 4.80% p.a for six month TDs Macquarie offers a better return than CommBank, Westpac and NAB - and is even with ANZ.

Other movers

  • Bank of Sydney cut rates by up to 35 bps
  • Aus Unity cut by 15 bps
  • UniBank and Teachers Mutual Bank cut rates by 10 bps
  • RaboBank varied rates up to 25 bps
  • G&C Mutual Bank cut rates up to 40 bps, including the six month rate which dropped 0.10% to 4.95% p.a.

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Picture from NAB media