With the RBA decision on Tuesday, the focus has been on mortgage-holders celebrating their first interest rate relief since the cash rate was dropped to 0.10% (not a misprint) in November 2020.
Even four percentage points higher at 4.10%, borrowers have welcomed the reprieve from what was Australia's highest cash rate in more than 13 years.
But what about savers who've been earning some decent interest on their funds in recent times?
The mood is a little less jubilant, particularly if forecasts of another two or three interest rate cuts this year play out.
But this is getting a little ahead of ourselves, particularly with Reserve Bank governor Michele Bullock reminding us the labour market remains strong, suggesting inflationary pressures may still be lurking.
Term deposit rates have been falling for months in preparation for the long-anticipated cash rate cut.
The highest rate on the market remains a flat 5.00% p.a. for six months at MyState Bank and Illawarra Credit Union with many former market leaders falling below the magic 5% mark over the past couple of months.
So, let's check the latest market movements.
Westpac drops TD rates by up to 25 bp
The big banks rarely lead the market in term deposit interest rates but Westpac's new rates, announced Friday morning, are particularly lacklustre.
None of its new rates features a four in front, although its fixed rate special offer of 4.70% p.a. (online only) for 11 months remains unchanged for deposits of $5,000 to $5 million.
Below are Westpac's new rates for deposits of between $5,000 and $2 million:
| Term | % change | New rate | Interest paid |
| 3 months | -0.25 | 3.00% p.a. | End of term |
| 4 months | -0.20 | 3.15% p.a. | End of term |
| 5 months | -0.20 | 3.25% p.a. | End of term |
| 6 months | -0.20 | 3.40% p.a. | End of term |
| 7 months | -0.10 | 3.50% p.a. | End of term |
| 8 months | -0.20 | 3.60% p.a. | End of term |
| 9 months | -0.25 | 3.75% p.a. | End of term |
| 10 months | -0.20 | 3.80% p.a. | End of term |
| 11 months | -0.20 | 3.80% p.a. | End of term |
| 3 years | -0.20 | 3.40% p.a. | Annually |
| 4 years | -0.20 | 3.40% p.a. | Annually |
| 5 years | -0.20 | 3.40% p.a. | Annually |
The rates drop by five basis points for monthly repayments.
The Westpac-owned stable of banks - St George Bank, Bank of Melbourne, and BankSA - also announced term deposit rate cuts.
The rates for terms under a year are in line with the parent bank although allow for lower deposits between $1,000 and $2 million.
In addition, there is a hefty 50 basis point cut in the two-year rate to 3.30% p.a. with interest paid annually.
The three-, four-, and five-year rates are also lower at 3.30% p.a. for annual payments and 3.25% p.a. for monthly.
Macquarie trims shorter-term rates for $1m+ deposits
Macquarie Bank has shaved five basis points off its three- and four-month rates for larger deposits of more than $1 million up to $9,999,999.
Big depositors will now receive 4.30% p.a. for three months and 4.25% p.a. for four months, with interest paid end of term, as follows:
| Term | % change | New rate | Interest paid |
| 3 months | -0.05 | 4.30% p.a. | End of term |
| 4 months | -0.05 | 4.25% p.a. | End of term |
Macquarie's best term deposit rate remains 4.60% p.a. for three months for deposits of $1 million and under, with interest paid end of term.
Bendigo giveth and taketh away
Bendigo Bank has adjusted its rates for deposits over $5,000 with some terms receiving a full percentage point boost and others losing 20 basis points, as follows:
| Term | % change | New rate | Interest paid |
| 5 months | +1.00 | 4.00% p.a. | End of term |
| 6 months | +0.30 | 4.30% p.a. | End of term |
| 7 months | +1.00 | 4.00% p.a. | End of term |
| 8 months | +1.00 | 4.00% p.a. | End of term |
| 9 months | -0.20 | 4.20% p.a. | End of term |
| 10 months | +0.85 | 3.85% p.a. | End of term |
| 11 months | +0.85 | 3.85% p.a. | End of term |
| 12 months | -0.20 | 4.20% p.a. | End of term |
Bendigo's best rate for deposits over $5,000 is now 4.30% p.a. for six months with interest paid at maturity.
For depositors wanting more frequent payments, the new six-month rate drops five basis points to 4.25% p.a. for quarterly or monthly payments.
The new 12-month rate also drops five basis points to 4.15% p.a. for semi-annual, quarterly, or monthly payments.
Bank of Sydney trims highest rates
The swashbuckling rate fixers at Bank of Sydney, notorious for their grand gestures, have been a little more circumspect in their latest moves, shaving 10 basis points off their two highest rates, available to online customers only.
The new online rates are 4.85% p.a. for three months and 4.80% p.a. for six months for amounts between $1,000 and $1 million, interest paid end of term, as follows:
| Term | % change | New rate | Interest paid |
| 3 months | -0.10 | 4.85% p.a. | End of term |
| 6 months | -0.10 | 4.80% p.a. | End of term |
Bank of Sydney once laid claim to the flat-out highest rate seen in this current tighter monetary policy period, hitting 5.50% p.a. on its 6-month rate in mid-2023.
AMP slashes by up to 30 bp
AMP Bank got the knives out for its term deposit rates this week, slashing the range of its products by between 10 and 30 basis points.
Its new best rate is 4.70% p.a. for deposits between $25,000 to $10 million invested for three months.
For smaller deposits ($5,000 to under $25,000), the three-month rate drops to 4.65% p.a. and 4.60% p.a. for six months.
Here's a look at some of AMP Bank's new TD rates below for deposits between $5,000 and under $25,000:
| Term | % change | New rate | Interest paid |
| 3 months | -0.15 | 4.65% p.a. | End of term |
| 4 months | -0.10 | 4.55% p.a. | End of term |
| 5 months | -0.20 | 4.60% p.a. | End of term |
| 6 months | -0.15 | 4.60% p.a. | End of term |
| 7 months | -0.20 | 4.35% p.a. | End of term |
| 8 months | -0.20 | 4.35% p.a. | End of term |
| 9 months | -0.10 | 4.50% p.a. | End of term |
| 10 months | -0.20 | 4.30% p.a. | End of term |
| 11 months | -0.20 | 4.30% p.a. | End of term |
| 12 months | -0.10 | 4.45% p.a. | End of term |
| 2 years | -0.30 | 3.95% p.a. | Annually |
The rates jump by five basis points for deposits over $25,000, paid end of term.
For more frequent payments on 12 month and two-year term deposits, the rates fall by five basis points for semi-annual payments, 10 basis points for quarterly payments, and 20 basis points for monthly payments.
Hume cuts TD special and more
Hume Bank's 100-day term deposit special rate for amounts of $1,000 and over has been cut by 20 basis points to 4.55% p.a. but remains the bank's best rate.
Here are its other rate moves this week for deposits between $1,000 and $25,000:
| Term | % change | New rate | Interest paid |
| 100-day special | -0.20 | 4.55% p.a. | End of term |
| 6 months | -0.15 | 4.50% p.a. | End of term |
| 9 months | -0.10 | 4.40% p.a. | End of term |
| 1 year | -0.10 | 4.40% p.a. | Annually |
For amounts between $5,000 and $25,000, the rate changes are as follows:
| Term | % change | New rate | Interest paid |
| 6 months | -0.15 | 4.40% p.a. | Monthly |
| 1 year | -0.10 | 4.30% p.a. | Monthly |
Military Bank leaves 5% club
Even before the RBA handed down its decision on Tuesday, Australian Military Bank had cut 20 basis points from its market leading six-month rate of 4.90% p.a. for deposits over $1,000.
Here are the new rates on its Investment Plus products:
| Term | % change | New rate | Interest paid |
| 4 months | -0.05 | 4.80% p.a. | End of term |
| 6 months | -0.20 | 4.90% p.a. | End of term |
| 9 months | -0.15 | 4.75% p.a. | End of term |
| 10 months | -0.05 | 4.65% p.a. | End of term |
| 12 months | -0.15 | 4.65% p.a. | Annually |
The same new rates apply to its Teen Plus products that accept deposits from $500 while corresponding Income Plus term deposits, with monthly interest payments, earn 10 basis points less.
Other movers
Horizon Bank has cut its term deposit rates by up to 20 basis points with its new best rate 4.50% p.a. for amounts $1,000 and over invested for nine months, with interest paid end of term.
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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.
Provider | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 1000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
| FEATURED | Personal Term Deposits - 6 months
| ||||||||||||
Disclosure | |||||||||||||
Personal Term Deposits - 6 months
Disclosure
| |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 5000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 25000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 25000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Term Deposit ($25,000+) - 6 months | |||||||||||||
| At Maturity | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | 5000 | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Macquarie Bank Term Deposit (<$1,000,000) - 6 months | |||||||||||||
- Competitive interest rates on all term lengths
- Deposits covered up to $250,000 under Government's Finance Claims Scheme
- Loyalty bonus at renewal
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Bernadette Lunas
Harry O'Sullivan
Denise Raward
Harrison Astbury
Staff Writers
