With uncertainty about the direction the RBA will take in June, there was both upward and downward moves made to rates this week.
Many analysts feel the cash rate is close to or at the highest it will reach, so some banks have decided rates need to come down in anticipation.
There was still good news for savers though, with other providers hiking up rates to set new market standards.
Competition to offer the most attractive returns for one year products has driven rates continually up, and it's now looking likely that should we see the RBA make further upward moves, the highest rate for one year terms could be as high as 5%.
Judo bank 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 | 4.65% p.a (+0.05) |
| Six months | $1,000-$999,999 | Monthly | 4.55% p.a (+0.05) |
| One year | $1,000-$999,999 | End of term | 4.80% p.a (+0.05) |
| One year | $1,000-$999,999 | Monthly | 4.70% p.a (+0.05) |
Throughout the past few months, Judo Bank has consistently been among the providers offering the highest rates for six month and one year term deposits.
This week, the neobank established its position as the market leader for both, with a 4.65% p.a return available on six month terms and 4.80% p.a for customers willing to put their money away for a year.
Earlier this week, fellow neobank Alex Bank announced it will begin offering term deposit products but they are currently waitlisted.
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 | 3.70% p.a (+0.05) |
| Three months | $5,000-$5,000,000 | End of term | 4.35% p.a (+0.15) |
| Six months | $5,000-$5,000,000 | End of term | 4.65% p.a (+0.05) |
| One year | $5,000-$5,000,000 | End of term | 4.80% p.a (+0.15) |
Macquarie decreases rates by 5 basis points
| Term length | Deposit size | Payment frequency | Interest rate (percentage point change) |
| Six months | $5,000-$1,000,000 | End of term | 4.30% p.a (-0.05) |
The biggest bank to make moves this week was Macquarie, lowering six month terms by five basis points.
Only two weeks ago, Macquarie increased six month rates by 25 basis points.
Other movers
- Hume varied rates by up to 30 basis points
- Great Southern Bank decreased rates by up to 30 basis points
- Bank Australia decreased rates by up to 40 basis points
- Summerland Credit Union decreased rates by up to 25 basis points
- Beyond Bank increased rates by up to 25 basis points
- Newcastle Permanent increased rates by up to 25 basis points
- Greater Bank increased rates by up to 25 basis points
- Australian Mutual increased rates by up to 25 basis points
Picture by RDNE on Pexels
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