Not only are savings account rates beginning to increase after being locked in a state of hibernation for some time, term deposit rates continue to trend north as banks look to provide competitive alternatives to savings accounts.
Over the past week, a number of banks have flagged their intent to increase rates for 12 month deposits in line with the RBA increase, yet banks such as Horizon Bank, Bank of Queensland, ING and Beyond Bank have passed on more significant increases.
Read more: Macquarie Bank increases transaction account interest rate
Horizon Bank
Horizon Bank increased term deposit rates this week by up to 150 basis points.
Highlights of this increase across term deposits with a minimum deposit balance of $5,000 include:
- 12 months, paid annually: 100 basis point increase to 2.10% p.a.
- 24 months, paid annually: 130 basis point increase to 2.60% p.a.
- 36 months, paid annually: 150 basis point increase to 3.00% p.a.
Bank of Queensland
Bank of Queensland (BOQ) increased term deposit rates by up to 75 basis points.
Highlights of this increase across term deposits with a minimum deposit balance of $5,000 include:
- 24 months, paid annually: 75 basis point increase to 3.00% p.a.
- 36 months, paid annually: 50 basis point increase to 3.00% p.a.
- 48 months, paid annually: 50 basis point increase to 3.00% p.a.
BOQ currently offers a 3.00% p.a. savings account for Gen-Z and Millennials aged up to 35 years, however this term deposit increase may appeal to a broader audience.
ING
ING has increased term deposit rates this week by up to 140 basis points.
Key increases across term deposits with a minimum deposit balance of $10,000 include:
- 180 days, paid at end of term: 140 basis point increase to 1.90% p.a.
- 210 days, paid at end of term: 100 basis point increase to 1.55% p.a.
- 270 days, paid at end of term: 40 basis point increase to 1.90% p.a.
- 330 days, paid at end of term: 120 basis point increase to 1.90% p.a.
- 1 year, paid annually: 75 basis point increase to 2.75% p.a.
Beyond Bank
Beyond Bank increased a broad range of term deposit rates by up to 40 basis points.
Key increases across term deposits with a minimum deposit balance of $5,000 include:
- 1 year, paid annually: 20 basis point increase to 0.90% p.a.
- 3 years, paid annually: 40 basis point increase to 1.35% p.a.
- 5 years, paid annually: 40 basis point increase to 1.35% 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 Pawel Czerwinski via Unsplash
Harry O'Sullivan
Denise Raward
Brooke Cooper
