Increases to term deposit rates this week come as ABS data on household wealth revealed in the September quarter households favored placing excess funds in deposit accounts to take advantage of rising interest rates.

ABS Head of Finance and Wealth Katherine Keenan noted the record increase in household take up of term deposits in the September quarter coincided with increasing interest rates, and income tax returns. 

“Household deposits were up 3.5% to $50.8 billion,” Ms Keenan said. 

The Westpac-Melbourne Institute Consumer Confidence Index for December further highlighted the appetite for deposits, with safe or defensive options favored by Aussie consumers as the wisest place to store savings.

“Thirty-four per cent of consumers nominated ‘bank deposits’ and 21% nominated ‘pay down debt’ as their preferred method of saving,” Westpac’s Bill Evans said. 

ING increases deposits by up to 1.10% p.a. 

ING has increased term deposits this week by up to 110 basis points, with a key highlight being increases to both 180 days (6-month) and 1-year deposits. 

ING’s 180 day term deposit rate has increased 60 basis points to offer a rate of 3.60% p.a. with interest paid at the end of term. 

The 1-year offering from ING has also increased by 30 basis points to surpass the 4% mark, offering a rate of 4.10% p.a. with interest paid annually.  

Both products require a minimum deposit of $10,000 in order to receive the rates outlined above. 

Newcastle Permanent increases deposits by up to 0.75%

The customer-owned bank has increased term deposits by up to 75 basis points, led by its 6-month and 12-month deposits. 

Newcastle Permanent’s 6-month term deposit has increased 75 basis points to a rate of 3.60% p.a., while the bank’s 12-month deposit has increased 10 basis points to 4.00% p.a. 

Both deposits require a minimum deposit of $1,000 with interest paid at the end of term. 

Community First Credit Union increases deposits by up to 0.60%

The credit union increased term deposits this week by up to 60 basis points, headlined by its 12-month deposit rate. 

Community First Credit Union now offers a 12-month deposit rate of 4.00% p.a. as a result of a 60 basis point increase. 

To receive this rate, customers are required to deposit a minimum of $5,000 with interest paid annually. 

Australian Military Bank increases deposits by up to 0.30%

Australian Military Bank has increased term deposits by up to 30 basis points, with its 6-month deposit leading the way. 

The mutual bank will offer a 6-month rate of 4.00% p.a., competing with Suncorp to offer the highest 6-month term deposit rates based on Savings.com.au market research. 

To receive this rate, customers are required to become a member of the bank and deposit $1,000 with interest paid annually.

G&C Mutual Bank increases deposits by up to 0.40%

Another mutual bank to join the pre-Christmas term deposit party was G&C Mutual, increasing deposits by up to 40 basis points. 

Highlights of this increase include the mutual bank’s 6-month deposit, increasing 35 basis points to offer a rate of 3.75% p.a. 

To receive this rate, customers are required to deposit $1,000 with interest paid at the end of term. 

Judo Bank cuts term deposits by up to 0.45%

Bucking recent trends, Judo Bank has slashed term deposit rates across both personal and SMSF deposits by up to 45 basis points for the first time since August.

The neobank cut rates for deposits across all lengths, with periods of 3, 4 and 5-years feeling the brunt after coming close to breaking the 5% barrier. 

Courtesy of a 30 basis point reduction, Judo Bank’s 3-year deposit rate now sits at 4.40% p.a., while the bank’s 4-year and 5-year deposits decreased by 35 and 45 basis points respectively to offer a new rate of 4.50% p.a. 

To receive these rates, customers are required to deposit a minimum of $1,000 with interest paid at the end of term.

AMP cuts term deposits by up to 0.40% 

AMP has continued to chip away at its term deposit rates, this time cutting rates across 3, 4 and 5-year deposit products by up to 40 basis points. 

This marks the third cut to term deposit rates in four weeks from AMP, having previously cut rates two weeks ago across 4 and 5-year deposits.    

The new rates for AMP’s 3, 4 and 5-year term deposits for a minimum balance of $5,000 are 4.25% p.a., with interest paid annually.

Rates for 3-year deposits were reduced by 40 basis points, 4-year deposits reduced 25 basis points and 5-year deposits reduced 35 basis points.

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