The announcement means ING now offers the highest rates in Australia for one year term deposit products, according to Savings.com.au's market research.

On a minimum deposit of $10,000, the return will be $530 and taxed as income.

The 5.30% p.a rate means ING will move ahead of Bank of Sydney, Judo and AMP, all of which have a 5.25% p.a return available.

However, Bank of Sydney and Judo allow deposits starting at $1,000, whereas ING customers need a minimum of $10,000 to earn the maximum 5.30% p.a rate.

ING also announced the highest six month term deposit rates will be increased by 25 basis points to 5.05% p.a.

Both these rates will kick in on 14 November for new accounts and existing customers rolling their term deposit balance over.

Today also saw Community First Bank up its special offer term deposit, available for new depositors until allocation is exhausted, to 5.25% p.a, although the minimum deposit size for that one is $50,000.

In the aftermath of the RBA increasing the cash rate by another 25 basis points on Tuesday, Australia is likely to see further upward movement to term deposit rates, as competition for market share heats up.

@savings.com.au ING drop market leading term deposit rate! #ing #termdeposit #termdepositrate #savings #deposit #savingscomau #fintok #fintokaustralia ♬ original sound - Savings.com.au

Highest one year term deposit rates in Australia

Bank Highest one year term deposit rate Deposit size Notes
ING 5.30% p.a $10,000-$5,000,000 Only available for new customers
Bank of Sydney 5.25% p.a $1,000-$1,000,000
Judo Bank 5.25% p.a $1,000-$999,999
AMP 5.25% p.a $25,000-$10,000,000
Community First Bank 5.25% p.a $50,000-$1,000,000 Only available for new customers. Limited allocation

ING committed to savers?

ING announced the new rate at the same time it informed home loan customers the bank would be passing on the 25 basis point increase in full to variable mortgage rates from 14 November.

It also revealed the balance on the Savings Accelerator, a tiered savings account with higher rates for higher balances, would see the rate on balances greater than $150,000 upped by 35 basis points to 4.70% p.a.

There has been no word yet on whether rates on the popular Savings Maximiser account, currently at 5.50% p.a, will also be increased.