AMP, Macquarie and Bendigo Bank were among the providers that increased term deposit rates this week.

The RBA's May monetary policy decision has prompted many to shift rates, but so far, many have taken the softer tone of RBA Governor Philip Lowe's accompanying remarks as a sign the Reserve Bank board may pause the cash rate once again in June, so some banks are likely holding off on more significant rate increases.

There were still several significant moves this week, including products drawing level with or moving within spitting distance of the market leaders.

AMP increases rates by up to 15 basis points

Term length Deposit size Payment frequency Interest rate (percentage point change)
Six months $5,000-$24,999.99 End of term 4.50% p.a (+0.15)
Six months $25,000-$99,999.99 End of term 4.55% p.a (+0.15)
Six months $100,000-$499,999.99 End of term 4.55% p.a (+0.15)
One year $5,000-$24,999.99 End of term 4.65% p.a (+0.05)
One year $25,000-$99,999.99 End of term 4.70% p.a (+0.05)
One year $100,000-$499,999.99 End of term 4.70% p.a (+0.05)

In its first move since the cash rate increase, AMP chose relatively minor upward adjustments to its term deposit rates.

However, a 5 basis point increase on one year products draws AMP's rates just five basis points away from the market leaders Judo, who announced a 4.75% p.a one year term deposit rate last week.

Likewise, a more substantial 15 basis point increase to six month term deposits means AMP are also hot on the heels of Judo in this space as well.

Westpac increases rates by up to 105 basis points

Term length Deposit size Payment frequency Interest rate (percentage point change)
Five months $5,000-$2,000,000 End of term 3.20% p.a (+1.05)
Six months $5,000-$2,000,000 End of term 3.30% p.a (+0.75)
One year $5,000-$2,000,000 End of term 3.95% p.a (+0.1)

Westpac is the first of the big four to respond to last week's cash rate movement, making large increases to shorter term deposit products.

The increase to five month term deposits was particularly notable, up 105 basis points to reach 3.20% p.a.

All of Westpac's term deposit products remain some way below the market leaders though, in keeping with a common theme throughout the rate tightening cycle of the big four electing not to join the race to offer higher rates than smaller competitors.

Citi varies rates by up to 40 basis points

Term length Deposit size Payment frequency Interest rate (percentage point change)
Six months $10,000-$2,000,000 End of term 4.50% p.a (+0.4)
One year $10,000-$2,000,000 End of term 4.70% p.a (+0.3)
Three, four or five years $10,000-$2,000,000 Annually 4.20% p.a (-0.2)

Another big mover this week was Citi, which joined AMP in now offering a 4.70% p.a interest rate to customers willing to say goodbye to their money for a year.

Citi also made a 40 basis point increase to six month terms.

However, it also elected to reduce rates on longer terms (three, four or five years), which were reduced by 20 basis points, a common theme in recent weeks with banks anticipating a lower interest rate environment in the long run.

Macquarie increases rates by 5 basis points

Term length Deposit size Payment frequency Interest rate (percentage point change)
Three months $5,000-$1,000,000 End of term 4.25% p.a (+0.05)
Four months $5,000-$1,000,000 End of term 4.25% p.a (+0.05)

In relatively minor news, Macquarie chose this week to slightly bump up rates on some of its shorter term deposit products.

Macquarie made more robust increases last week, moving up six and nine month terms by 25 basis points.

Firstmac increases rates by up to 15 basis points

Term length Deposit size Payment frequency Interest rate (percentage point change)
Two months $5,000-$5,000,000 End of term 3.65% p.a (+0.07)
Three months $5,000-$5,000,000 End of term 4.20% p.a (+0.10)
Six months $5,000-$5,000,000 End of term 4.60% p.a (+0.15)
One year $5,000-$5,000,000 End of term 4.65% p.a (+0.05)

Firstmac joined Judo this week in offering the market leading rate of 4.60% p.a for a six month term deposit.

One year terms at Firstmac moved up five basis points to 4.65% p.a, which is five points behind AMP and ten points behind Judo which offers the highest rate according to Savings.com.au's market research.

Bendigo increases rates by 45 basis points

Term length Deposit size Payment frequency Interest rate (percentage point change)
One year $5,000-$5,000,000 End of term 4.50% p.a (+0.45)

This week's biggest mover was Bendigo, which decided to hike up one year term deposit rates by 45 basis points.

Despite the jump though, Bendigo still lags behind the likes of Judo and AMP in the one year space.

Other movers

  • Qudos increased rates by up to 25 basis points
  • Horizon Bank increased rates by up to 30 basis points
  • My State varied rates by up to 250 basis points

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