Which banks increased term deposit rates this week?

Finding one-year term deposit rates starting with a 4 is becoming more common following another week of term deposit increases, with MyState Bank, Bank of us, Heritage, ME Bank and Citi joining the club.

In-line with their responses to the RBA, CommBank and ING also increased deposit rates in the past week, yet remain out of touch with a flurry of major and mutual banks offering one-year rates of 4% or greater.

CommBank increases term deposit rates by up to 0.40%

Australia’s largest bank increased its one-year term deposit rate by 40 basis points (0.40%) to offer a rate of 3.75% p.a.

CommBank’s 3.75% p.a. rate is available for depositors with a minimum balance of $5,000 with interest paid annually.

ING increases term deposit rates by up to 0.75%

ING increased term deposit rates this week by up to 75 basis points, with its one-year rate increasing by 55 basis points (0.55%).

ING’s new one-year deposit rate of 3.80% p.a. requires a minimum deposit of $10,000 with interest paid annually.

MyState Bank increases term deposit rates by up to 0.70%

MyState Bank increased term deposit rates by up to 70 basis points this week.

This increase sees the Tasmanian mutual bank break the 4% one-year barrier for both regular and online term deposit offerings.

MyState Bank’s one-year deposit rate increased 40 basis points to 4% p.a. requiring a minimum deposit of $5,000 with interest paid at the end of term.

Bank of us increases term deposit rates by up to 0.80%

Another Tasmanian mutual bank to reach the 4% one-year deposit club this week was Bank of us, increasing its one-year rate by 40 basis points.

To receive Bank of Us' 4% p.a. rate, depositors are required to have a minimum deposit balance of $100,000 with interest paid at the end of term.

Heritage Bank increases term deposit rates by up to 0.75%

Heritage Bank increased term deposit rates this week by up to 75 basis points.

Heritage Bank’s one-year deposit rate headlined movement, increasing 60 basis points (0.60%) to crack 4%.

To receive Heritage Bank’s rate of 4% p.a. depositors require a minimum balance of $1,000 with interest paid at the end of term.

ME Bank increases term deposit rates by up to 2.00%

ME Bank increased term deposit rates by the largest amount this week for both deposit customers and businesses, by up to 200 basis points.

ME Bank’s one-year term deposit rate broke the 4% barrier, increasing by 20 basis points to 4.1% p.a.

To receive the 4.1% p.a. rate, ME Bank depositors require a minimum deposit of $5,000 with interest paid annually.

Citi Bank increases term deposit rates by up to 0.75%

NAB owned Citi Bank increased term deposit rates this week by up to 75 basis points, with its one-year rate increasing by 30 basis points (0.30%).

Citi Bank’s new one-year deposit rate of 4% p.a. requires a minimum deposit of $10,000 with interest paid annually.

People’s Choice increases term deposit rates by up to 1.05%

Having previously become the second bank to crack into the 4% one-year term deposit club, People’s Choice increased its rate further this week off the back of a 105 basis point increase to deposit rates.

People’s Choice’s one-year deposit rate increased 10 basis points to 4.10% p.a. requiring a minimum deposit of $5,000 with interest paid annually.

Advertisement

Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for a 12-month term.

Image by Karen Laark Boshoff via Pexels