G&C Mutual was the mover of the week, establishing itself as the outright market leader for nine month and one year terms.

MOVE Bank, Newcastle Permanent and Aus Unity all also boosted TD returns significantly this week, offering rates now well above the 5% p.a mark.

This week also saw the release of APRA figures on ADI performance in the March quarter, which showed that despite continually lagging behind smaller outfits for TD rates, the landscape is still dominated by the big four.

More than 78% of the total amount in term deposits in Q1 was with CBA, Westpac, NAB and ANZ, despite far higher rates available at alternatives like Judo Bank or Bank of Sydney.

Given term deposits at the big four totalled more than $883 billion, it isn't a stretch at all to say that means billions of dollars in lost earnings from Aussies who didn't take the time to find the highest rate they could.

If you're reading this, you're probably in the minority that explore all the available options, which is great, but it's a pretty timely reminder that the Australian banking landscape goes way beyond the majors.

Be it home loans, savings accounts, TDs or beyond, there's a pretty good chance that shopping around will net you a big return.

Anyway, these were the new term deposit rates that dropped this week.

G&C Mutual hikes up to 35 bps

Term length Deposit size Payment frequency Interest rate (Change)
Nine months $1,000-$99,999,999.99 End of term 5.30% p.a (+0.30)
Nine months $1,000-$99,999,999.99 Monthly 5.25% p.a (+0.30)
One year $1,000-$99,999,999.99 End of term 5.40% p.a (+0.35)
One year $1,000-$99,999,999.99 Monthly 5.35% p.a (+0.35)

G&C Mutual blasted itself back to the top of the TD market, taking Heartland's spot as the outright market leader for both nine months and one year terms.

You'd have to go back to last winter for term deposit rates this high, and the 5.40% p.a on offer at G&C is just 10 basis points away from the peak of last year, when Bank of Sydney briefly hit 5.50%.

Given Heartland promotes itself as offering Australians banking products that are 'the best or only of their kind', it's an exciting time to be a TD enthusiast, with the possibility of a return serve in the coming weeks that would push rates further into the stratosphere.

A one year TD at G&C with monthly interest payments now returns the same as Heartland with a lump sum payment at the end of the term.

Suncorp varied rates up to 115 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three months $5,000-$99,999.99 End of term 4.40% p.a (+1.40)
Six months $5,000-$99,999.99 End of term 4.75% p.a (+1.15)
Six months $100,000-$999,999.99 End of term 4.80% p.a (+1.15)
Seven months $5,000-$99,999.99 End of term 3.60% p.a (-1.15)
Nine months $5,000-$2,000,000 End of term 5.05% p.a (+0.70)

Suncorp changed course fairly dramatically as far as TD rates are concerned, slashing seven and four month rates while giving major boosts to three, six and nine month terms.

The maximum available rate at Suncorp is now 5.05% p.a on nine month terms, which is also the only product at Suncorp where rates do not vary depending on the deposit size.

For six months for example, the rate is 4.75% p.a for deposits up to $100,000, going up to 4.80% p.a for deposits between $100,000 and $1,000,000 and then 4.85% p.a on deposits from deposits $1,000,000 to $2,000,000.

A $2,000,000 deposit into a Suncorp three month TD would return $24,000 after three months, subject to income tax, which is only just less than what the average adult on a full time salary earns.

Bank of Sydney cuts rates up to 15 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three months $1,000-$1,000,000 End of term 4.85% p.a (-0.15)
Nine months $1,000-$1,000,000 End of term 5.10% p.a (-0.05)
One year $1,000-$1,000,000 End of term 5.10% p.a (-0.05)

In more sombre news, Bank of Sydney cut TD rates for the second week in a row.

Bank of Sydney was previously right up there for nine months and one year, but is now 15 bps back from Judo and Heartland at 5.25% p.a for nine months, and a full 25 bps away from Heartland's 5.35% p.a on one year terms.

However, for now the premiere product at Bank of Sydney (six months) remains untouched, at 5.20% p.a, which is only 5 and 10 bps away from Judo and Heartland Bank respectively.

MOVE Bank hiked up to 40 bps

Term length Deposit size Payment frequency Interest rate (Change)
Three months $5,000-$2,000,000 End of term 5.00% p.a (+0.10)
Six months $5,000-$2,000,000 End of term 5.25% p.a (+0.25)
Nine months $5,000-$2,000,000 End of term 5.25% p.a (+0.20)
One year $5,000-$2,000,000 End of term 5.30% p.a (+0.40)

MOVE Bank came in hot this week, with big hikes across its range of products.

For both six months and one year, MOVE is all of a sudden just 5 bps away from the pinnacle of the market, while it joins Heartland and Judo at 5.25% p.a for nine months.

It's always welcome news when new players come to jostle at the summit of the market, and there might be fresh hope that Australia may yet see a return to the glory days of last winter, when Bank of Sydney briefly touched the sun (a 5.50% p.a term deposit rate).

Other movers

  • Australian Unity hiked up to 15 bps, with a top rate of 5.10% p.a for six months.
  • Community First Bank cut rates 5 bps
  • Newcastle Permanent hiked 15 bps
  • The Mutual Bank hiked up to 105 bps
  • People's Choice and Heritage Bank both hiked 5 bps.

Picture by Carles Rabada on Unsplash