Shifting expectations about the future of the cash rate have seen term deposit rates cut back dramatically over the past few weeks.

Banks don't want to get locked into term deposits paying well over 5% in returns while the RBA cash rate is forecast to decrease in 2024, so there's been a rush to reduce returns.

This week, the RBA confirmed rates will once again stay at 4.10% through September, which saw providers like AMP, Judo and ING cut term deposit returns.

However, there were still a couple of term deposit products that saw rates go up this week, with banks trying to take advantage of broad rate cuts elsewhere to grow market share.

ING cuts rates by up to 25 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $10,000-$5,000,000 End of term 4.70% p.a (-0.25)
Six months $10,000-$5,000,000 End of term 4.95% p.a (-0.15)
Nine months  $10,000-$5,000,000 End of term 4.95% p.a (-0.20)
One year $10,000-$5,000,000 End of term 5.05% p.a (-0.20)
Two years $10,000-$5,000,000 End of term 4.95% p.a (-0.15)

ING is the latest institution to cut back the majority of its term deposit products to return below 5% p.a.

Its one year term does still return 5.05% p.a though, which is now one of the highest rates available in Australia.

Compared to what's on offer at some of Australia's other biggest banks, ING term deposit rates continue to be relatively strong.

G&C Mutual Bank varies rates by up to 50 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $1,000-$99,999,999.99 End of term 4.70% p.a (+0.50)
Six months $1,000-$99,999,999.99 End of term 4.95% p.a (+0.45)
One year $1,000-$99,999,999.99 End of term 5.20% p.a (+0.45)
Two years $1,000-$99,999,999.99 Annually 5.25% p.a (+0.25)
Three years $1,000-$99,999,999.99 Annually 4.75% p.a (-0.35)

G&C Mutual, a customer owned Sydney based bank, was one of the lending institutions to go against the grain this week, raising rates on term deposit products of two years or less.

A 5.20% p.a return for one year terms and 5.25% p.a for two means G&C now offers rates among the highest in Australia, per Savings.com.au's market research.

Cuts applied to three, four and five year term lengths.

This week the bank also increased home loan rates for new customers by 30 basis points.

Firstmac cuts rates by up to 75 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $5,000-$5,000,000 End of term 4.60% p.a (-0.30)
One year $5,000-$5,000,000 End of term 4.60% p.a (-0.35)
Two years $5,000-$5,000,000 End of term 4.00% p.a (-0.75)

For successive weeks, Firstmac has cut term deposit rates.

Particularly noteworthy was a 75 basis point decrease to two year term deposits, which means this product has seen rates drop by 90 basis points in the past fortnight.

AMP cuts rates by up to 55 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $25,000-$4,999,999.99 End of term 4.40% p.a (-0.35)
Six months $25,000-$4,999,999.99 End of term 4.70% p.a (-0.30)
Nine months $25,000-$4,999,999.99 End of term 4.50% p.a (-0.45)
One year $25,000-$4,999,999.99 End of term 4.50% p.a (-0.55)
Two years $25,000-$4,999,999.99 Annually 4.40% p.a (-0.50)

AMP is another to continue an uninterrupted downward trajectory this week, cutting back rates once again on its range of products.

Its range of term deposit products remains one of the most comprehensive, offering discounts for more regular interest payments as well as deposits smaller than $25,000.

Macquarie cuts rates by up to 10 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Six months $5,000-$1,000,000 End of term 4.70% p.a (-0.05)
One year $5,000-$1,000,000 End of term 4.80% p.a (-0.10)

Judo cuts rates by up to 10 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $1,000-$1,000,000 End of term 4.70% p.a (-0.05)
One year $1,000-$1,000,000 End of term 5.00% p.a (-0.10)
Two-Five years $1,000-$1,000,000 End of term 5.10% p.a (-0.10)

Rates are still coming down, but Judo is one of the few of the previous market leaders continuing to offer rates in excess of 5% p.a.

The likes of Bank of Sydney, AMP and Firstmac were all competing with Judo to offer the market leading rate a few weeks ago, peaking at 5.50%, but Judo is the only one yet to cut all rates back below the 5% threshold.

Bank Australia varies rates by up to 20 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
One year $500-$1,000,000 End of term 5.25% p.a (+0.10)
One year $500-$1,000,000 Monthly 5.15% p.a (+0.10)
Eighteen months $500-$1,000,000 Monthly 4.85% p.a (-0.20)

Like G&C, Bank Australia looks to be making an attempt to pounce on customers disillusioned with the cuts to term deposit rates happening elsewhere.

Bank Australia is also offering a maximum return of 5.25% p.a, on its one year products, while its also one of the few providers who will accept deposits smaller than $1,000.

Other notable movers

  • Heritage Bank varies rates by up to 25 basis points
  • Peoples Choice varies rates by up to 25 basis points
  • Transport Mutual Credit Union cuts rates by 25 basis points
  • Great Southern Bank cuts rates by up to 15 basis points
  • Regional Australia Bank cuts rates by 10 basis points
  • The Mutual varies rates by up to 40 basis points