These deposit increases remain competitive with some of the highest savings account offerings, with many Aussies now weighing up whether a term deposit or savings account will be more beneficial moving forward.

Prior to Tuesday’s cash rate decision, only five banks offered a one-year term deposit rate beginning with a 4 based on Savings.com.au market research - these included Judo Bank, AMP, Macquarie, People’s Choice and Community First. 

Deposit data published by the Reserve Bank data for October revealed the average one-year term deposit rate now sits at 2.70% p.a.

Since increases to the cash rate commenced in May, the average one-year deposit rate has grown 230 basis points (2.30%).

To compete with savings accounts, banks continue to offer rates more than 130 basis points (1.30%) above the average for one-year term deposit rates.

ANZ increases term deposit rates by up to 0.65%

The big-four bank has increased its one-year rate across Advanced Notice term deposits by 0.65%, taking the rate to 4.00% p.a. 

This requires a minimum deposit of $5,000 with interest paid annually.

Teacher’s Mutual Bank, UniBank increase term deposit rates by up to 2.25%

Leading the charge with the largest deposit rate increase this week was Teacher’s Mutual Bank and its subsidiary UniBank, increasing rates by up to 225 basis points. 

The mutual bank's offering an 'Edvest' member-only rate of 4.30% p.a. or 4.25% p.a., for non-members, for an 11-month term.

To become an Edvest member, savers must pay a $10 membership fee.

Teacher’s Mutual Bank and UniBank deposits require a minimum deposit of $1,000 for balances up to $4,999 or $5,000 for balances up to $500,000 with all interest paid at the end of term. 

Judo Bank increases term deposits by up to 0.35%

Judo Bank’s response to the RBA cash rate and challenges thrown down by other banks weren’t quite enough to pip out its competitors and reclaim top spot this week. 

It increased its one-year offering by 10 basis points to a rate of 4.20% p.a. 

The new one-year rate of 4.20% from Judo Bank requires a minimum deposit of $1,000 with interest paid at the end of term. 

Gateway Bank increases term deposit rates by up to 0.35%

Gateway Bank has increased term deposit rates by up to 35 basis points. 

The mutual bank is another to join the 4% club, offering a one-year deposit rate of 4.20% p.a to compete with the likes of Judo Bank. 

Gateway Bank requires a minimum deposit of $1,000 with interest paid at the end of term. 

Greater Bank increases term deposit rates by up to 0.30%

Prior to the RBA’s decision on Tuesday, Greater Bank increased term deposit rates by up to 30 basis points. 

This increase saw Greater Bank’s one-year deposit rate join the 4% club, with customers requiring a minimum deposit of $5,000 to receive the rate.

Interest across Greater Bank’s range of term deposits is paid at the end of term. 

Bankwest increases term deposit rates by up to 0.80%

On Friday, Bankwest increased Online and Gold term deposit rates by up to 80 basis points.

Both term deposit products will now offer a one-year rate of 4.10% p.a., with a minimum deposit of $1,000 and interest paid annually.    

Great Southern Bank increases term deposit rates by up to 0.80%

Australia’s largest mutual bank has increased term deposit rates by up to 80 basis points this week. 

Whilst not quite breaching the 4% mark for one-year term deposits, Great Southern Bank increased its one-year rate by 65 basis points to 3.90% p.a.

Great Southern Bank term deposits require a minimum deposit of $5,000 with interest paid at the end of term.

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