As far as term deposits are concerned, it was another slow news week with just two providers adjusting rates.
With the RBA cash rate expected to remain at 4.35% for at least another few months, the market has seemingly hit something of an equilibrium and the top end has been relatively stable.
The highs of mid last year look increasingly unlikely to be reached again, but there are still plenty of products with strong returns.
Judo, Gateway Bank, Challenger Bank and Bank of Sydney are among the institutions that still have rates available at 5.10% p.a or more, with six month terms often the peak.
As of 19 April, the returns on these products in particular stand out.
Top term deposit rates in Australia
| Provider | Term length | Deposit size | Interest rate |
| Credit Union SA | Seven months | $1,000-$99,999,999.99 | 5.25% p.a |
| Challenger Bank | Six months | $25,000*-$1,000,000 | 5.20% p.a |
*$5,000 for existing Challenger customers
The top end of the market was left alone this week, but there were still two banks that rolled out fresh rates.
AMP varies rates up to 90 bps
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
| Six months | $25,000-$1,000,000 | End of term | 4.95% p.a (+0.15) |
| Nine months | $25,000-$1,000,000 | End of term | 4.90% p.a (+0.15) |
| One year | $25,000-$1,000,000 | End of term | 4.90% p.a (+0.15) |
| Three/Four/Five years | $25,000-$1,000,000 | Annually | 3.30% p.a (-0.90) |
In keeping with the rest of the market, AMP bumped up shorter term deposit rates this week while simultaneously slashing returns on three year products and above.
While AMP is still well behind what's on offer at some of the providers listed above, it is very competitive compared to other larger banks.
For one year terms, its top rates are now level with ING on 4.90% p.a, while six month returns are 10 bps above the maximum rate on offer at both ING and Suncorp (4.85% p.a).
TD fans with less than $25,000 to play with are still welcome at AMP, but all the above rates are discounted 5 bps for deposits between $5,000 and $24,999.
AMP Chief Economist Shane Oliver said while market expectations have shifted to later this year or even early next year, Australia is still on track for rate cuts.
"Despite the relative resilience of economic activity inflation has fallen sharply globally," he said in his weekly wrap up.
"In the US, cooling measures of labour market tightness are continuing to point to lower services inflation ahead.
"It’s a similar picture in Australia. So, while rate cuts have been delayed, they are still likely."
He acknowledged the situation in the Middle East remains a risk to the upside, but that things may not turn out as bad as some fear.
"[Iranian strikes were] well flagged, measured and there was minimal damage and designed not to provoke a bigger Israeli counter-retaliation," he explained.
"So far so good - markets have not gone into free fall and the oil price has not surged."
Other movers
- Community First hikes six month terms by 10 bps
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Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for a six-month term.
- Easy online application
- Interest can be paid to other institutions
- Maturity alert by email and phone
Picture by Andre Taissin on Unsplash
Harry O'Sullivan
William Jolly
