After softer than forecast inflation numbers on Wednesday, a hold at next Tuesday's RBA meeting looks all but assured.

For the most part, market observers are confident the cash rate has peaked at 4.35%, with cuts expected in the latter part of the year.

It's little surprise then, the majority of term deposit rate movements this week were down, competition easing up now further increases appear unlikely.

InfoChoice's database showed just six providers moved rates in January, with average rates trending down; the average 12-month rate went from 4.91% p.a. to 4.68% p.a. for example.

However, there were still some rates boosted this week, most notably at Westpac subsidiaries St George, Bank of Melbourne and Bank SA, which all saw one product upped by nearly one whole percentage point.

CommBank varies rates 5 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Seven months $5,000-$49,999 End of term 3.75% p.a (-0.05)
Eight months $5,000-$49,999 End of term 3.85% p.a (+0.05)
24-33 months $5,000-$49,999 Annually 3.95% p.a (-0.05)

CommBank made minor adjustments this week to some of its standard term deposit products.

The highest standard rate available at CommBank is 4.25% p.a on 12 month terms, although existing customers can take advantage of the special offer products, where the highest rate is 4.88% p.a.

Throughout the high rate period, CommBank and the other major banks have consistently offered term deposit rates well below smaller providers like Judo or Bank of Sydney, seemingly not seeing the benefits in growing TD market share.

CBA head of Australian economics Gareth Aird says the bank sees "no chance of any other outcome" than a hold at next week's RBA meeting, with cuts expected to begin in September, so these rates could be bought down further before too long.

Bank of Sydney cuts rates up to 20 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Ten months $1,000-$1,000,000 End of term 4.90% p.a (-0.20)
One year $1,000-$1,000,000 End of term 5.00% p.a (-0.15)

Unlike the likes of CommBank, term deposit customers are clearly a priority for Bank of Sydney, the only institution to hit 5.50% p.a. - albeit, short-lived - for term deposit rates in 2023.

Like most others though, the bank is now cutting back rates, with one year terms pegged back to 5.00% p.a.

Unusually, the highest rate available at Bank of Sydney is on nine month term deposits, where customers can earn up to 5.10% p.a, but it would not be a shock to see this product also get slashed in the coming weeks.

Westpac group ups special offer term deposit rates by 98 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Eight months $1,000-$5,000,000 Monthly 4.88% p.a (+0.98)

For those mourning the seeming end of a golden era for term deposit rates, there was a little bit of good news from the Westpac Group this week.

At St George, Bank of Melbourne and Bank SA, the special offer rates on eight month term deposits were boosted by close to 100 bps.

Customers who renew online also earn an "online bonus" 0.10% p.a extra, which takes the overall rate to 4.98% p.a, on the precipice of the 5% benchmark.

These rates are available for a limited time, and are also only on offer for existing customers, but TD enthusiasts will likely be taking whatever solace they can find.

ING cuts rates up to 10 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $10,000-$5,000,000 End of term 4.95% p.a (-0.10)
One year $10,000-$5,000,000 End of term 5.00% p.a (-0.10)
Two years $10,000-$5,000,000 End of term 4.70% p.a (-0.05)

ING was one of the few large banks that kept up the pace for term deposit rates last year, but it's also chosen to peg back rates.

There's still a maximum rate of 5% p.a on offer, which is becoming increasingly rare, but those interested might want to act quick.

Judo cuts term deposit rates by 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 5.05% p.a (-0.05)
One year $1,000-$999,999 End of term 5.05% p.a (-0.10)
Two years $1,000-$999,999 End of term 4.85% p.a (-0.15)

For the third week in a row, previous market leaders Judo slashed term deposit rates.

For one year terms, Judo is now 20 basis points behind market leaders Challenger Bank's 5.25% p.a rate, which in turn is still below the 5.35% on offer at Judo at the start of December.

In its report for the 2023 financial year, Judo claimed it only needed 2% of Australia's $1.1 trillion term deposit market to meet its long term growth targets, so may be content with the customer base developed during its time as the Australian front runner.

Its household deposit book grew by 21% from $3.725b to $4.741b over 2023, according to recent APRA data.

Macquarie cuts rates by 5 bps

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Nine months $5,000-$1,000,000 End of term 4.70% p.a (-0.05)
One year $5,000-$1,000,000 End of term 4.75% p.a (-0.05)
Two years $5,000-$1,000,000 Annually 4.45% p.a (-0.05)

Other movers

  • Firstmac cuts rates by 10 bps
  • Bank of Queensland varies rates up to 20 bps
  • Newcastle Permanent varies rates up to 50 bps
  • Greater Bank varies rates up to 25 bps
  • Regional Australia Bank varies rates up to 40 bps
  • The Mutual Bank varies rates up to 120 bps
  • RACQ Bank varies rates up to 15 bps
  • ME cuts rates by 5 bps

Picture from CommBank