ANZ, Bendigo, and Judo were among the banks to respond to the 25 basis point increase to the cash rate.

Many economists did not expect the RBA to push rates beyond 4%, and have needed to upwardly revise predictions for the terminal rate.

Savers will be licking their lips at this week's round of term deposit increases, with several notable players making big moves including some new market leading products.

ANZ increases rates by up to 25 basis points on Advance Notice products

Term length Deposit size Payment frequency Interest rate (percentage point change)
One year $5,000-$99,999.99 End of term 4.60% p.a (+0.25)
One year $5,000-$99,999.99 Semi Annually 4.55% p.a (+0.25)
One year $5,000-$99,999.99 Quarterly 4.52% p.a (+0.24)
One year $5,000-$99,999.99 Monthly 4.51% p.a (+0.24)

Throughout this high rate period, the big four banks have kept term deposit rates significantly lower than what's on offer at smaller providers like Judo or Bank of Queensland.

A 4.60% bonus rate available to certain Westpac customers is the highest rate on offer at the big four for one year term deposits, but ANZ has now drawn level with this latest 25 basis point increase.

To receive the Advance Notice rate, ANZ customers must agree to provide at least 31 days' notice before withdrawing their money early.

Judo increases rates by up to 10 basis points

Term length Deposit size Payment frequency Interest rate (percentage point change)
Six months $1,000-$999,999 End of term 4.75% p.a (+0.1)
One year $1,000-$999,999 End of term 4.90% p.a (+0.1)
Two years $1,000-$999,999 End of term 4.90% p.a (+0.05)

Judo Bank, which has continually sought to lead the way for term deposit rates, now offers the highest rates for both one and two year terms, according to Savings.com.au's market research.

The bank leapfrogs Firstmac, which moved to 4.85% for one year terms two weeks ago, with a 10 basis point increase.

Judo also now offers a six month term deposit rate of 4.75% p.a., which is level with the current market leading rate.

Macquarie increases rates by up to 30 basis points

Term length Deposit size Payment frequency Interest rate (percentage point change)
Three months $5,000-$1,000,000 End of term 4.60% p.a (+0.2)
Six months $5,000-$1,000,000 End of term 4.65% p.a (+0.25)
One year $5,000-$1,000,000 End of term 4.70% p.a (+0.3)

Macquarie, who have been fixtures of term deposit rates in recent times, again moved up rates this week.

After the RBA decision, Macquarie chose a more substantive increase of up to 30 basis points, with six month terms now 10 basis points off the market leaders.

One year term deposit rates at Macquarie are 20 basis points off the pace after Judo's increase.

Bendigo increases rates by up to 35 basis points

Term length Deposit size Payment frequency Interest rate (percentage point change)
Four months $5,000-$5,000,000 End of term 4.30% p.a (+0.2)
One year $5,000-$5,000,000 End of term 4.75% p.a (+0.35)
One year $5,000-$5,000,000 Monthly 4.70% p.a (+0.35)

A 35 basis point increase means Bendigo now offers up to 4.75% p.a on one year term deposits.

While this would have meant the Victorian bank offered the highest rates in Australia a couple of months back, it is still 15 basis points behind the market leaders.

Bank of Sydney increases rates by up to 25 basis points

Term length Deposit size Payment frequency Interest rate (percentage point change)
Four months $1,000-$500,000 End of term  4.45% p.a (+0.25)
Six months $1,000-$500,000 End of term 4.70% p.a (+0.2)
Twelve months $1,000-$500,000 End of term 4.75% p.a (+0.1)

ME varies rates by up to 60 basis points

Term length Deposit size Payment frequency Interest rate (percentage point change)
Four-Five months $5,000-$2,000,000 Monthly 3.60% p.a (-0.6)
Seven-Eight months $5,000-$2,000,000 End of term 4.70% p.a (+0.3)
Twelve-Eighteen months $5,000-$2,000,000 End of term 4.75% p.a (+0.25)

ME made interesting moves this week, passing on at least the 25 basis point increase to 12 and seven month terms, but decreasing rates on four month terms with monthly payments by 60 basis points.

Other notable movers

  • Bank Australia increased rates by up to 70 basis points
  • Summerland Credit Union increased rates by up to 15 basis points
  • Newcastle Permanent increased rates by up to 75 basis points
  • BOQ increases Premier investment term deposit rates by up to 15 basis points

Image by pear285 via Flickr