Last week was a relatively quiet one for term deposit rates, with Bendigo and Bank of Sydney the only major banks to adjust rates, but activity looks to be ramping back up again.

ANZ, Suncorp and Great Southern Bank were among several providers to change TD rates this time around, and once again, there was movement in both directions.

The RBA is widely expected to hold rates steady at 4.10% for at least another month, with economists from CommBank, Westpac and ANZ all believing rates will be unchanged until 2024.

However fuel prices could weigh on the consumer price index (CPI - inflation) and will be one to watch closely when the latest indicator is released Wednesday next week.

If the cash rate is constant for an extended period of time, term deposit providers won't need to try to stay ahead of the curve, and can instead focus on finding the sweet spot where rates are high enough to build market share, but with a healthy margin below their loan products.

While this isn't guaranteed (the RBA has maintained further tightening could be necessary if service price inflation remains high, for example), we could be set for another interesting period of rate changes.

ANZ cuts Advance Notice rates by up to 60 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Two-three months $5,000-$99,999.99 End of term 1.50% p.a (-0.05)
Four-five months $5,000-$99,999.99 End of term 3.60% p.a (-0.60)
One-two years $5,000-$99,999.99 Annually 4.80% p.a (-0.05)
Two-three years $5,000-$99,999.99 Annually 4.00% p.a (-0.50)

The biggest bank to alter term deposit rates this week was ANZ, which cut back returns on its Advance Notice products.

Advance Notice term deposits have higher rates than standard at ANZ, but customers need to give at least 31 days' notice before making a withdrawal.

After a five basis point decrease for one to two year terms, ANZ customers will now earn 4.80% p.a, the same as the special offer available on 12-23 month term deposits at CommBank.

Great Southern Bank varies rates up to 25 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $5,000-$99,999,999.99 End of term 4.80% p.a (-0.05)
One year $5,000-$99,999,999.99 End of term 4.95% p.a (-0.10)
Two years $5,000-$99,999,999.99 End of term 4.70% p.a (+0.25)

Bank of Sydney increases rates by up to 50 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $1,00-$1,000,000 End of term 5.00% p.a (+0.50)
One year $1,00-$1,000,000 End of term 5.15% p.a (+0.15)

Who knows what's going on at the Bank of Sydney, but its term deposit strategy has done a full 180 degree turnaround in the past month.

Rates peaked at 5.50% p.a in July, then were cut for seven weeks in succession, dropping to just 4% p.a a couple of weeks ago.

Last week however, things turned around dramatically, with increases of more than 100 basis points to some products.

It fired again this week, boosting returns on the once great six month term deposit back up to the 5% p.a mark, as well as one year terms to a very competitive 5.15% p.a.

Predicting where rates anywhere will go is difficult, but it's seemingly truly futile where Bank of Sydney is concerned: you wouldn't be surprised to see rates change by 100 basis points in either direction next week.

Suncorp cuts rates by 5 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Seven month $5,000-$99,999.99 End of term 4.80% p.a (-0.05)
Nine month $5,000-$99,999.99 End of term 4.40% p.a (-0.05)
One year $5,000-$99,999.99 End of term 4.80% p.a (-0.05)
One year $100,000-$999,999.99 End of term 4.85% p.a (-0.05)

Suncorp made minor adjustments this week, cutting rates on its range of seven month, nine month and one year products by 5 basis points.

The above are the most prominent of these products, but Suncorp also offers products that service deposits of $1,000,000 or more, as well as interest paid more frequently in exchanged for a discounted rate.

Other movers

  • Credit Union SA varied rates by up to 90 basis points
  • Hume Bank increased rates by up to 25 basis points
  • Horizon Bank increased rates by up to 30 basis points
  • MOVE Bank varied rates by up to 30 basis points