The 70 basis point increase (0.70%) by People's Choice comes just a matter of days after Community First Credit Union became the first to break the 4.00% 12-month deposit barrier. 

The 12-month rate of 4.00% p.a. offered by People's Choice has a lower minimum deposit requirement of $5,000 instead of $50,000 in the case of Community First.

People's Choice 12-month offering with interest paid monthly also received a significant boost to compete with savings account offerings from the likes of ING and Bank of Queensland. 

The 12-month deposit with interest paid monthly increased 68 basis points (0.68%) to offer a rate of 3.93% p.a. 

Bank First increases interest-upfront term deposits by 0.25% 

Unique to the term deposit market, Bank First increased its 150-day (5 month) interest-upfront deposit by 25 basis points this week to 2.60% p.a.

Where this product differs from a traditional deposit is that interest is paid upfront on the deposit amount, rather in-arrears monthly, quarterly, bi-annually, annually or at-maturity as is the case normally.

A Bank First spokesperson said the interest-upfront deposit is quite a distinct product in the market. 

"Customers will take up this product if they have a current need for extra cash or income and willing to get lower rate as a consequence," they told Savings.com.au. 

Majors pass on deposit increases

Following the RBA's October decision, three of the big-four in CommBank, ANZ and NAB have increased rates across term deposit products this week in line with their previous announcements.

Highlights of this movement sees the blowtorch put on one-year terms, with CommBank increasing by 135 basis points to 3.35% p.a.; NAB increasing by 10 basis points to 3.35% p.a.; and ANZ increasing its 11-12 month ‘Advance Notice' term deposit by 15 basis points to 3.50% p.a.

All deposits require a minimum deposit balance of $5,000.

These offerings from the major banks are not enough to pass the current 12-month deposit market leaders of Community First and People's Choice, who are closely followed by Judo Bank offering a rate of 3.90% p.a. 

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