Most rate movement this week was down, including G&C Mutual who cut back rates on previously market leading nine month and one year terms.

Earlier this week, the Australian Council of Social Services (ACOSS) called on the RBA to cut rates at this months monetary policy meeting, ACOSS CEO Cassandra Goldie claiming weak GDP growth through Q4 shows the Reserve Bank have gone too far.

While it's unlikely Michele Bullock and the board will heed these warnings, further rate increases may be out of the question, although Ms Bullock has continually maintained that the board has not ruled anything out.

Nevertheless, it wasn't all one way traffic for term deposit rates, with notable rate increases to products from BOQ, Firstmac and Challenger Bank among others.

NAB cut rates up to 88 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Eight/Nine months $5,000-$1,999,999 End of term 4.00% p.a (-0.88)
Three/Four/Five years $5,000-$1,999,999 Annually 3.80% p.a (-0.20)

NAB is the latest of the big four to cut term deposit rates after Westpac did the same last week.

The top rate available at NAB is now 4.70% p.a on one year terms, behind the top rates at CommBank and Westpac, but the NAB product is unconditional while CBA and Westpac's are only available for existing customers.

The ANZ Advance Notice one year term deposit also currently returns 4.70% p.a.

ING cut rates up to 20 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $10,000-$5,000,000 End of term 4.75% p.a (-0.10)
Six months $10,000-$5,000,000 End of term 4.85% p.a (-0.10)
One year $10,000-$5,000,000 End of term 4.90% p.a (-0.10)
Two years $10,000-$5,000,000 End of term 4.50% p.a (-0.20)

There was a time when ING was the only major bank to be seriously competing with the likes of Judo and Bank of Sydney for the highest term deposit rates, but that time seems to have come and gone.

This week, ING officially waved goodbye to rates starting with a 5, dropping to a top rate of 4.90% p.a on one year terms.

Among the biggest banks in Australia though, this is still a competitive rate, higher than Suncorp's top rate of 4.85% p.a for one year.

Firstmac boost rates up to 10 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $5,000-$5,000,000 End of term 5.00% p.a (+0.10)
One year $5,000-$5,000,000 End of term 4.95% p.a (+0.05)

Firstmac went against the tide this week, boosting returns on six month and one year terms.

For six months, the non bank lender cracked the 5% mark, now 15 basis points behind the market leaders.

G&C Mutual cut rates up to 20 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Nine months $1,000-$99,999,999.99 End of term 5.00% p.a (-0.20)
One year $1,000-$99,999,999.99 End of term 5.05% p.a (-0.15)
Two years $1,000-$99,999,999.99 Annually 4.85% p.a (-0.15)

After this week's cuts, G&C Mutual has relinquished its position as market leader for nine month and one year terms.

For one year, Challenger Bank is now out on its own at 5.20% p.a, while it also now has the top spot for nine month terms at 5.15% p.a.

BOQ boost rates up to 10 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $5,000-$250,000 End of term 4.80% p.a (+0.10)
Nine months $5,000-$250,000 End of term 4.80% p.a (+0.05)
One year $5,000-$250,000 End of term 4.80% p.a (+0.10)

The biggest institution to increase term deposit rates this week was Bank of Queensland, moving to equivalise six month, nine month and one year terms at 4.80% p.a.

It remains slightly behind the top rates available at ING and Suncorp.

Challenger Bank varies rates up to 10 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $25,000*-$1,000,000 End of term 4.75% p.a (-0.10)
Six months $25,000*-$1,000,000 End of term 5.10% p.a (+0.05)
Nine months $25,000*-$1,000,000 End of term 5.15% p.a (+0.05)

*$5,000 for existing Challenger Bank customers

Challenger Bank are now the market leaders for nine month and one year terms after this weeks increase (and the cuts from G&C Mutual).

For six months, Challenger is now just 5 bps away from the market leaders Gateway Bank.

For much of last year, Judo and Bank of Sydney were the two heavy hitters for term deposit rates, but Challenger and Gateway have upstaged them so far in 2024.

Other movers

  • Macquarie cut six month term deposit rates 5 bps to 4.75% p.a
  • Bank Australia varied rates 5 bps, including an increase on six month terms to 5.00% p.a.
  • Summerland Bank cut rates up to 40 bps
  • Illawarra Credit Union boosted rates up to 145 bps
  • ME Bank varied rates up to 315 bps
  • Great Southern Bank varies rates up to 40 bps