If you keep up to date with term deposit movements, you'll know the past couple of months have seen banks pushing rates higher and higher to outdo one another. 

For the first time in a while though, this week saw some term deposit rates reduced.

At the start of the month, there was a general acceptance that April's monetary policy decision would be no different to the preceding 10, and rates would continue to go up.

However, insecurity in the global banking industry, softening inflation and low retail trade are among several factors that have led analysts to suggest the RBA holding next week is a genuine possibility.

While some providers continue to hike up term deposit rates, CBA and Macquarie announced cuts, which could be indicative of things to come if the Reserve Bank does decide a pause is needed.

Commonwealth Bank varies rates by up to 25 basis points

Term length Deposit size Payment frequency Interest rates (Percentage point increase)
Six months $5,000-$49,999.99 End of term 3.25% p.a (-0.2)
Six months $5,000-$49,999.99 Monthly 3.25% p.a (-0.2)
Six months $50,000-$1,999,999.99 End of term 3.25% p.a (-0.25)
Six months $50,000-$1,999,999.99 Monthly 3.30% p.a (-0.2)
One year $5,000-$49,999.99 End of term 3.95% p.a (+0.1)
One year $5,000-$49,999.99 Monthly 3.85% p.a (+0.1)
One year $50,000-$1,999,999.99 End of term 3.95% p.a (+0.1)
One year $50,000-$1,999,999.99 Monthly 3.85% p.a (+0.1)

Throughout this high rate period Australia's largest banks have lagged behind smaller providers for term deposit rates.

It cut six month terms by up to 25 basis points.

In what its economists called a 'very close call', CBA is now one of the banks anticipating a pause to the cash rate next week. 

Ongoing one year terms did see a marginal increase of 10 basis points, but they remain below 4%, off the pace of market leaders.

That said, it has a 12-month 'special offer' rate of 4.35% p.a.

Macquarie varies rates by up to 25 basis points

Term length Deposit size Payment frequency Interest rates (Percentage point increase)
Three months $5,000-$1,000,000 End of term 4.10% p.a (+0.1)
Four months $5,000-$1,000,000 End of term 4.10% p.a (+0.25)
Two years $5,000-$1,000,000 Annually 4.00% p.a (-0.25)
Three or four years $5,000-$1,000,000 Annually 3.60% p.a (-0.25)
Five years $5,000-$1,000,000 Annually 3.65% p.a (-0.25)

Macquarie, which offers 4.50% p.a on one year terms and 4.25% p.a for six months, chose this week to reduce rates on its longer term deposit products.

While shorter terms at Macquarie remain high (4.50% p.a for one year is just 10 basis points behind Judo, the market leader), it seems the bank expects the cash rate to have fallen significantly by 2025.

ING increases rates by up to 40 basis points

Term length Deposit size Payment frequency Interest rates (Percentage point increase)
Four months $10,000-$5,000,000 End of term 3.90% p.a (+0.4)
Six months $10,000-$5,000,000 End of term 4.30% p.a (+0.2)
Seven months $10,000-$5,000,000 End of term 4.50% p.a (+0.2)
One year $10,000-$5,000,000 End of term 4.60% p.a (+0.2)
Two years $10,000-$5,000,000 Annually 4.60% p.a (+0.2)

ING announced increases to several of its term deposit rates in the same week it announced fixed home loan rates would be cut.

RBA data suggest this is indicative of a broader trend of fixed home loan rates tapering in recent months, perhaps reflecting recent market expectations that the terminal cash rate will not be as dramatic as previously expected.

Bendigo Bank increase rates by up to 155 basis points

Term length Deposit size Payment frequency Interest rates (Percentage point increase)
Four months $5,000-$5,000,000 End of term 3.80% (+1.55)
Nine months $5,000-$5,000,000 End of term 3.80% (+0.85)

With so much uncertainty about the direction interest rates will go in the coming months, you could be forgiven for assuming the period of large increases to term deposit products was over.

In the short term though, the cash rate is likely to remain at or near the the highest level since 2012. Average term deposit rates are the highest since 2015.

This saw the bank implement huge rate hikes this week by up to 155 basis points, but their products remain behind competitors (the aforementioned ING for example, who remain ahead of Bendigo in the four month space despite this huge jump).

Suncorp increases rates by up to 85 basis points

Term length Deposit size Payment frequency Interest rates (Percentage point increase)
Six months $5,000-$99,999.99 End of term 3.50% p.a (+0.4)
Six months $5,000-$99,999.99 Monthly 3.45% p.a (+0.4)
Six months $100,000-$999.999.99 End of term 3.55% p.a (+0.4)
Six months $100,000-$999.999.99 Monthly 3.50% p.a (+0.4)
One year $5,000-$99,999.99 End of term 4.20% p.a (+0.2)
One year $5,000-$99,999.99 Monthly 4.15% p.a (+0.2)
One year $100,000-$999.999.99 End of term 4.20% p.a (+0.2)
One year $100,000-$999.999.99 Monthly 4.15% p.a (+0.2)

Suncorp increased rates on many of its term deposit products this week.

The above table is a snapshot of rates for the most popular terms, but many other are on offer at Suncorp, including 18 month terms, rates for which went up 85 basis points in some cases.

One year terms with Suncorp all moved above the 4% threshold.

Other movers

  • Bank First increased rates by up to 15 basis points.
  • My State increased rates by up to 15 basis points

Picture by Commonwealth Bank