This comes following an announcement by the Treasurer on Wednesday directing the Australian Competition and Consumer Commission (ACCC) to launch an inquiry into Australia’s retail deposit market.
Treasurer Jim Chalmers said it's a fact that banks have been a lot slower to pass on the increases in interest rates to savers than to mortgagees.
“This is the reason why I've asked the ACCC to do some work in this space because we want to make sure that banks are doing the right thing here,” Mr Chalmers said.
In forming findings from this inquiry, the ACCC will consult with financial regulators, including the RBA, APRA and ASIC.
In its February Statement of Monetary Policy (SOMP), the RBA revealed banks’ deposit rates have risen, but by less than the cash rate overall.
“Banks have passed on larger rate increases to wholesale depositors than households,” the statement read.
“This different treatment is likely, in part, to reflect wholesale depositors having a wider range of market-based alternatives in which to place cash.”
This comes as ANZ and NAB economists revised their forecasts this week, predicting the RBA cash rate to rise to 4.10% - revised up from 3.85%.
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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.
Community First Credit Union increases deposit rates by up to 0.25% p.a.
Community First Credit Union has increased term deposit rates in the past week by up to 25 basis points to offer the most competitive 12-month term deposit based on Savings.com.au market research.
This new rate is offered by Community First as a special offer, which sees a term deposit of 4.50% p.a. with interest paid at the end of term for customers with a minimum balance of $50,000.
Those with smaller balances can also benefit from Community First’s increase, with 12, 24 and 36-month term deposit rates lifting 25 basis points to 4.15% p.a. with interest paid monthly on minimum balances of $5,000.
Judo Bank increases deposit rates by up to 0.25% p.a.
Judo Bank has increased term deposit rates this week for personal and SMSF customers by up to 25 basis points as the race for the 12-month deposit crown heats up once more.
This increase sees Judo Bank’s 12-month deposit rate lift by 5 basis points to offer a rate of 4.45% p.a. with a minimum balance requirement of $1,000 and interest paid at the end of term.
This is 5 basis points lower than the market leader, Community First, as detailed above, but has a much lower deposit requirement.
Judo Bank’s most significant increase was applied to three month deposit rates, increasing 25 basis points to offer a rate of 3.70% p.a. with a minimum balance requirement of $1,000 and interest paid at the end of term.
G&C Mutual Bank varies deposit rates by 0.15% p.a.
G&C Mutual announced both increases and decreases to 1 and 2-year deposit rates in the past week by 15 basis points.
Had G&C Mutual Bank kept 12-month deposit rates in tact, the crown would have remained with the mutual bank.
Instead the 15 basis point decrease sees G&C Mutual now offer a rate of 4.35% p.a. for customers with a minimum balance of $1,000 and interest paid annually.
At the opposite end of the ladder, G&C Mutual Bank’s 2-year deposit rate climbed 15 basis points to 4.65% p.a. with a minimum balance of $1,000 and interest paid annually.
ING increases deposit rates by up to 1.10% p.a.
ING has increased term deposit rates this week by up to 110 basis points.
Key highlights include ING’s 330 day (just under 11 months) term deposit increasing 110 basis points to 4.00% p.a., while ING’s 12-month deposit rate lifted 5 basis points to 4.15% p.a.
ING term deposits require a minimum deposit of $10,000 with interest paid either at the end of term or annually.
Macquarie Bank increases deposit rates by up to 0.20% p.a.
Macquarie Bank has increased term deposit rates by 10 basis points across 3, 6, 9-month deposits, while its 12-month deposit rate has increased by 20 basis points.
Macquarie Bank’s new 12-month rate of 4.20% p.a. requires a minimum deposit of $5,000 with interest paid annually.
Greater Bank increases deposit rates by up to 0.75% p.a.
Greater Bank has increased term deposit rates by up to 75 basis points in the past week.
Key highlights include Greater Bank's 2, 3 and 4-year term deposits increasing to 4.25% p.a. requiring a minimum deposit of $5,000 with interest paid at the end of term.
Suncorp Bank increases deposit rates by up to 0.55% p.a.
Suncorp Bank increased a range of 3, 4 and 9-month term deposit rates in the past week by up to 55 basis points.
Suncorp Bank's 9-month term deposit increased by the full 55 basis points to offer a new rate of 4.10% p.a.
To receive this new rate, customers are required to deposit a minimum of $5,000 with interest paid quarterly.
Bank Australia increases deposit rates by up to 0.20% p.a.
Bank Australia increased term deposit rates in the past week by up to 20 basis points.
A $500 minimum deposit is one of the lowest minimum balance requirements on the market based on Savings.com.au research.
Highlights of Bank Australia's term deposit increases include its 18 and 24-month deposits, lifting by 20 basis points to 4.20% p.a. with interest paid at the end of term.
Credit Union SA cuts deposit rate by 0.65% p.a.
Credit Union SA slashed one particular product in the past week, that being its 2-year deposit rate by 65 basis points.
This decrease sees the 2-year rate offered by Credit Union SA come back to 3.75% p.a. with a minimum deposit of $5,000 required and interest paid at the end of term.
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Denise Raward
Harry O'Sullivan
William Jolly
