More deposit cheer is anticipated over the next fortnight as savers continue to weigh up the choice between savings accounts and term deposits.
Despite only a handful of banks passing on term deposit increases following Tuesday's cash rate decision, it is still early days for banks to respond.
The Reserve Bank's latest deposit figures for August detailed the average rate of one-year term deposits continues to grow, increasing to 1.30% p.a.
Since the RBA began increasing the cash rate in May, the average one-year deposit rate has climbed nearly 100 basis points.
Among those who have taken the leap this week include both major and mutual banks such as Macquarie Bank, Australian Unity, MyState Bank and Credit Union SA.
Macquarie Bank increases deposit rates by 0.50%
On Wednesday, Macquarie Bank increased term deposit rates for terms between two and five years by up to 50 basis points.
Term deposits with Macquarie Bank over these periods require a minimum deposit of $5,000 with interest paid annually.
Macquarie Bank now offers one of the highest two-year term deposit rates based on Savings.com.au market research, at 4.05% p.a.
The rate of 4.05% p.a. now also applies to three-year term deposits with Macquarie, while four and five-year term deposits receive a rate of 4.10% p.a.
Australian Unity Bank increases deposit rates by up to 0.75%
The mutual bank increased personal and SMSF term deposit rates off the back the RBA's September decision by up to 75 basis points.
Term deposits with Australian Unity Bank require a minimum deposit of $5,000 with interest paid at end of term.
Highlights of these increases for Australian Unity Bank include:
- Personal term deposit, 9-months: 75 basis point increase to 2.85% p.a.
- SMSF term deposit, 9-months: 75 basis points to 2.80% p.a.
- Personal term deposit, 12-months: 25 basis points to 3.35% p.a.
- SMSF term deposit, 12-months: 25 basis point increase to 3.30% p.a.
MyState Bank increases deposit rates by up to 0.95%
MyState Bank increased term deposit rates by up to 95 basis points this week.
Term deposits with MyState Bank require a minimum deposit of $5,000 with interest paid end of term.
MyState Bank's six and 12-month term deposits saw the largest increases, with the six-month rate increasing 95 basis points to 2.70% p.a while the 12-month rate increased 35 basis points to 3.60% p.a.
Credit Union SA increases deposit rates by up to 1.00%
The largest of the term deposit increases this week came from another mutual, with Credit Union SA increases two deposit rates by up to 100 basis points.
The mutual lender's four and five-month rates increased by 1.00% and 0.70% respectively, to reach 2.50% p.a.
To achieve this rate, customers of Credit Union SA are required to deposit a minimum $5,000 with interest paid end of term.
Judo Bank increases deposit rates by up to 0.25%
Following a cut to longer term deposits last week, Judo Bank has this week increased rates across its shortest terms of three and six-months.
Judo Bank term deposits require a minimum deposit of $1,000 with interest paid end of term.
The non-bank lenders 3-month term deposit rate has increased 25 basis points to 2.25% p.a., while the six-month term deposit rate increased 10 basis points to 2.80% p.a.
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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 six-month term.
Image by Annie Spratt via Unsplash
Denise Raward
Harry O'Sullivan
Emma Duffy
