NAB, ANZ, ING and Judo were the biggest names among several other TD providers to cut back on rates.

The past few weeks have been an eerie mirror of 2023 - rates kept on climbing until peaking about mid July, then started to fall dramatically through August.

While the cash rate was at 4.10% this time last year, prior to the final November hike, the peak for term deposit rates was nonetheless higher, with Bank of Sydney briefly cracking 5.50% p.a. for six month terms.

In 2024, the highlight was 5.40% p.a. for one year terms from G&C Mutual, along with a sustained spell of rates at or above 5.30% p.a. for six months and one year from Heartland Bank.

Just to hammer home that TD rates really are on the way down, all three of the above cut rates further this week.

However, if you're despairing the demise of top end term deposit rates, there is still one limited hold out.

The special offer at Illawarra Credit Union, available for new customers with a minimum deposit of $10,000, currently returns 5.30% p.a. for six months and 5.20% p.a. for one year.

Both of these rates are the highest on market, but the offer is for a limited time only so if you didn't get around to locking in those peak rates at banks like Heartland, it's time to get a move on.

Heartland Bank cuts rates up to 16 bps

Term length Deposit size Payment frequency Interest rate (Change)
Six months $25,000-$1,000,000 End of term 4.99% p.a. (-0.05)
One year $25,000-$1,000,000 End of term 5.00% p.a. (-0.10)

Feels bad man.

Heartland, which up until last week was the outright market leader for both six month and one year terms, cut rates back again.

Heartland is now below the likes of Judo, G&C Mutual, Suncorp and ING for six month terms, while level with Judo, HSBC and MyState Bank among several others at 5.00% p.a. for one year terms.

ING cuts rates up to 45 bps

Term length Deposit size Payment frequency Interest rate (Change)
Six months $10,000-$5,000,000 End of term 5.05% p.a. (-0.05)
Eleven months $10,000-$5,000,000 End of term 5.10% p.a. (-0.10)
One year $10,000-$5,000,000 End of term 5.00% p.a. (-0.05)
Two years $10,000-$5,000,000 End of term 4.50% p.a. (-0.25)

These cuts notwithstanding, ING still offers the highest TD rate of any of the top 10 biggest banks by customer deposit size, with 5.10% p.a. on 11 month terms.

Suncorp has a top rate of 5.05% p.a., while Bank of Queensland and HSBC have one product with a 5% p.a. return (six months and one year respectively).

Judo cuts rates another 5 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three months $1,000-$2,000,000 End of term 4.90% p.a. (-0.15)
Six months $1,000-$2,000,000 End of term 5.00% p.a. (-0.10)
Nine months $1,000-$2,000,000 End of term 4.90% p.a. (-0.20)
One year $1,000-$2,000,000 End of term 4.90% p.a. (-0.15)

For the second week in a row, Judo cut back one year rates, this time around by 15 bps.

This time around, that cut was accompanied by three month and nine month terms also having returns slashed.

Perhaps the worst news was the cut to six month rates, down to 5.00% p.a.

NAB varies rates up to 80 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three-Four months $5,000-$1,999,999 End of term 3.25% p.a. (-0.25)
Six-Seven months $5,000-$1,999,999 End of term 3.60% p.a. (-0.20)
Eight-Nine months $5,000-$1,999,999 End of term 4.80% p.a. (+0.80)
One year $5,000-$1,999,999 End of term 4.50% p.a. (-0.40)
Three/Four/Five years $5,000-$1,999,999 End of term 3.30% p.a. (-0.50)

ANZ varies Advance Notice rates up to 80 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three/Four months $5,000-$1,999,999 End of term 3.25% p.a. (-0.25)
Six/Seven months $5,000-$1,999,999 End of term 3.50% p.a. (-0.40)
Eight/Nine months $5,000-$1,999,999 End of term 4.80% p.a. (+0.75)
One year $5,000-$1,999,999 End of term 4.50% p.a. (-0.10)

Two of the big four cut the majority of term deposit rates this week, although both NAB and ANZ accompanied it with a major boost for eight month terms.

At all of the big four banks, the top rate is now 4.80% p.a. - on nine months at CBA and 11 months at Westpac.

With the cuts at the top end of the market, the gap to the big four is reducing, although still pretty substantial.

Read more: ANZ and NAB alter TD strategy

G&C Mutual cuts rates up to 45 bps

Term length Deposit size Payment frequency Interest rate (Change)
Six months $1,000-$99,999,999 End of term 5.05% p.a. (-0.15)
Nine months $1,000-$99,999,999 End of term 4.90% p.a. (-0.15)
One year $1,000-$99,999,999 End of term 5.00% p.a. (-0.10)
Two years $1,000-$99,999,999 Annually 4.60% p.a. (-0.25)

Other movers

  • AMP varied rates up to 190 bps
  • Bank of Sydney cut rates up to 50 bps (although the 5.10% p.a. six month rate is still there)
  • Arab Bank Australia cut rates up to 25 bps
  • Bank Australia cut rates up to 15 bps
  • Heritage Bank and People's Choice cut rates up to 20 bps

Picture from NAB