Firstmac, Gateway Bank and Judo all boosted term deposit returns this week.

However, CommBank and Macquarie were among those to cut, with developments in the past couple of weeks pointing away from further cash rate increases next year.

GDP growth in the September quarter was weaker than expected, unemployment continues to rise and household spending is declining, all of which suggest the rate hikes Australia has already seen are working to contract domestic demand, and reduce inflation.

The RBA rate tracker, powered by the ASX, is now suggesting markets are attributing a 3% chance to rates being cut in February, with a hike not even under consideration.

While this has likely buoyed many struggling mortgage holders, term deposit enthusiasts might be rushing to lock in rates before there are more cuts.

Judo varies rates up to 15 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $1,000-$999,999 End of term 5.00% p.a (+0.10)
Six months $1,000-$999,999 End of term 5.15% p.a (+0.10)
Two years $1,000-$999,999 End of term 5.15% p.a (-0.10)
Three-Five years $1,000-$999,999 End of term 5.10% p.a (-0.15)

Judo Bank's new rate of 5.00% p.a for three month term deposits is market leading, while 5.15% for six month terms draws it level with the likes of Firstmac and Gateway Bank.

It wasn't all positive news though, with cuts to some of its longer term products.

Last week, Judo cut back rates on term lengths one year and above, losing the market leader spot for one year.

This week, the neobank has once again cut back its two year rate, losing the market leading spot to the likes of AMP and Gateway Bank who offer 5.20% p.a for two year term deposits.

Rates for three, four and five years were also cut back, although Judo continues to hold on to the top spot for four and five year terms.

CommBank cuts special offer rates by up to 30 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
One year $5,000-$1,999,999 End of term 5.00% p.a (-0.05)
Two years $5,000-$1,999,999 End of term 4.80% p.a (-0.30)

Continuing the theme of longer terms having rates reduced was CommBank, which significantly cut back returns on its special offer term deposits.

These rates are available for a limited time, to existing customers, and require advanced notice for early withdrawal.

CommBank cuts normal rates 5 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
13-17 months $5,000-$49,999.99 Annually 4.20% p.a (-0.05)
18-23 months $5,000-$49,999.99 Annually 4.20% p.a (-0.05)
36-47 months $5,000-$49,999.99 Annually 3.95% p.a (-0.05)

The standard range of term deposit products at CommBank also saw rates slightly cut back this week.

Even before these reductions, CBA's rates weren't much to write home about compared to what's on offer elsewhere, but it does suggest Australia's largest bank see further cash rate increases as less likely.

Writing after the unemployment numbers dropped earlier this week, Head of Australian Economics at CommBank Gareth Aird said the RBA will likely be reluctant to hike rates any further given the most recent data.

"Recent incoming economic data does not make the case for more policy tightening," Mr Aird said.

"Markets have priced that the next move in the cash rate is down. And we agree."

Firstmac/Goldfields Money increases rates up to 10 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $5,000-$5,000,000 End of term 4.95% p.a (+0.05)
One year $5,000-$5,000,000 End of term 5.25% p.a (+0.10)

After a 10 basis point increase to one year terms, Firstmac is now just 5 basis points away from ING and Bank of Sydney, the current market leaders.

For three month terms, it is also now just 5 bps away from Judo.

Gateway Bank increases rates up to 20 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $1,000-$500,001 End of term 4.90% p.a (+0.20)
Six months $1,000-$500,001 End of term 5.15% p.a (+0.20)
One year $1,000-$500,001 End of term 5.25% p.a (+0.05)

Gateway Bank is another to offer 5.15% p.a for six month terms, while it's also now within spitting distance of the market leaders for both three month and one year terms.

Macquarie Bank decreases rates up to 40 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $5,000-$1,000,000 End of term 4.85% p.a (-0.10)
Nine months $5,000-$1,000,000 End of term 4.85% p.a (-0.10)
One year $5,000-$1,000,000 End of term 4.95% p.a (-0.10)
Two years $5,000-$1,000,000 Annually 4.70% p.a (-0.30)
Three years $5,000-$1,000,000 Annually 4.60% p.a (-0.40)

Other movers

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  • BCU Bank increases rates up to 55 bps
  • RaboBank varies rates up to 25 bps