It was a slightly more subdued week for term deposit rate movements, with nearly four weeks until the next monetary policy decision and not much notable data that might influence the Reserve Bank come March 19.

The Wage Price Index for December was released on Wednesday, which showed wages are now growing faster than prices, in line with RBA forecasts.

The expectation continues to be that rates will be kept on hold at 4.35% for a prolonged period, with cuts by the end of the year a realistic possibility.

This has been the outlook for most of this year, and there have already been widespread cuts to term deposit rates from many of the banks who previously offered big returns.

ANZ was the biggest cutter this week, slashing rates by up to 0.63%, while CommBank also cut back returns on several products.

Rate movement wasn't all downwards though, with CommBank also making some hikes, while fan favourites Judo Bank increased rates for the first time this year.

CommBank vary rates 5 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Eight months $5,000-$49,999.99 End of term 3.80% p.a (-0.05)
Eight months $50,000-$1,999,999.99 Monthly 3.80% p.a (+0.05)

Australia's biggest bank made minor alterations to its standard range of term deposit products this week, tweaking the rates on eight month terms.

The highest rate available at CommBank for those who aren't already a personal or business banking customer continues to be 4.25% p.a.

CommBank cut special offer rates 5 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
One year $5,000-$1,999,999.99 End of term 4.75% p.a (-0.05)

Those who are up to date with the term deposit market will have noticed the standard rates at CommBank aren't much to write home about, considering there are still plenty of products out there sitting above 5.00% p.a.

For some time now though, the top rates at CommBank have been on special offer products, available for existing personal or business banking customers and requiring at least 30 days notice before an early withdrawal.

The most recent special offer kicks in from February 23, 4.75% p.a on one year terms.

This is a 5 basis point discount from the previous one year term, and also lags behind the previous special offer of 4.88% p.a on one year terms, which has seemingly been discontinued.

CommBank Head of Australian Economics Gareth Aird said after last weeks' labour force numbers that the RBA will need to make at least 75 bps worth of cuts to the cash rate before the end of the year to avoid the unemployment rate exceeding 4.5%.

ANZ cut Advance Notice rates up to 63 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Eight months $5,000-$99,999.99 End of term 4.25% p.a (-0.63)
Eight months $5,000-$99,999.99 Monthly 4.20% p.a (-0.61)

Last week, all of the big four banks had a maximum term deposit rate of 4.88% p.a on eight month terms.

Westpac and NAB are still holding firm, but ANZ joined CommBank in slashing back these rates significantly.

The top rate at ANZ is now 4.70% p.a, on one year terms.

Unlike CommBank, these rates at ANZ are not a special offer with limited availability, but are distinct from the standard term deposit range in requiring at least 31 days notice before an early withdrawal.

Judo hike rates up to 10 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $1,000-$999,999 End of term 5.00% p.a (+0.05)
Nine months $1,000-$999,999 End of term 5.10% p.a (+0.10)
One year $1,000-$999,999 End of term 5.10% p.a (+0.10)

After a steady stream of rate cuts through the start of 2024, Judo Bank has changed its approach, with rate hikes across its range of products.

The once market leading Judo is now 20 bps behind the front runners for six months, Challenger Bank at 5.20% p.a.

For one year and nine month terms, Judo is now just ten points behind the market leaders.

G&C Mutual offer 5.20% p.a for both nine month and one year terms, while Qudos also have a 5.20% p.a return for one year.

Other movers

  • Horizon Bank varies rates up to 50 bps
  • BCU Bank varies rates up to 130 bps
  • Community First varies rates up to 25 bps
  • The Mac cut rates 20 bps
  • The Mutual varies rates up to 60 bps
  • MOVE Bank cut rates up to 10 bps
  • Greater Bank varies rates up to 50 bps
  • Newcastle permanent varies rates up to 50 bps