Last Friday, Westpac joined the conga line of large and small deposit takers dropping term deposit rates as part of a widespread market plunge.

The downward trend means few deposit takers are currently offering rates of 5% or more.

Westpac had been the last of the big bank hold-outs on cutting its TD rates and, unsurprisingly, its subsidiary banks St George, Bank of Melbourne, and BankSA followed suit on Monday morning.

Like Westpac, the biggest cuts were on longer term rates with three-to-four and four-to-five-year terms dropping 45 basis points for deposits between $1,000 to $2 million where interest is paid either annually or monthly.

Shorter-term rates have also taken a considerable haircut.

The best new rate for terms of 12 months or less is now 4% p.a. for nine, 10, 11, and 12-month terms for the same deposit range where interest is paid end of term.

The rates for interest paid monthly are five basis points less at 3.95% p.a.

Here are some of the new rates:

Term length Deposit size Payment frequency Interest rate (Change %)
3-4 months $1,000-$2m End of term 3.25% p.a. (-0.3)
4-5 months $1,000-$2m End of term 3.35% p.a. (-0.25)
5-6 months $1,000-$2m End of term 3.45% p.a. (-0.25)
6-7 months $1,000-$2m End of term 3.6% p.a. (-0.2)
7-8 months $1,000-$2m End of term 3.6% p.a. (-0.25)
8-9 months $1,000-$2m End of term 3.8% p.a. (-0.1)
9-10 months $1,000-$2m End of term 4% p.a. (-0.05)
10-11 months $1,000-$2m End of term 4% p.a. (-0.05)
11-12 months $1,000-$2m End of term 4% p.a. (-0.05)
12 months $1,000-$2m End of term 4% p.a. (-0.3)
12-24 months $1,000-$2m Annually 3.8% p.a. (-0.25)

MOVE Bank offers 5.05%

Although MOVE Bank moved a swathe of TD rates lower this week, it boosted its seven-month rate by 10 basis points to 5.05% p.a. for amounts between $5,000 and $2 million with interest paid end of term.

It makes MOVE one of only a handful of deposit takers still in the 5% club although according to Savings.com.au's product comparison, there are still some market-topping 5.15% and 5.10% rates on offer.

Largely, MOVE pulled its TD rates downward including its 11-month term deposit rate which is still offering 5% p.a. despite losing 10 basis points, with interest paid at end of term.

Its 12-month rate fell 20 basis points to 4.8% for end-of-term payment.

Here's some of the new end-of-term rates:

Term length Deposit size Payment frequency Interest rate (Change %)
4 months $5,000-$2m End of term 4.85% p.a. (-0.05)
5 months $5,000-$2m End of term 4.9% p.a. (-0.05)
6 months $5,000-$2m End of term 4.95% p.a. (-0.05)
7 months $5,000-$2m End of term 5.05% p.a. (+0.1)
8 months $5,000-$2m End of term 4.9% p.a. (-0.05)
9 months $5,000-$2m End of term 4.85% p.a. (-0.2)
10 months $5,000-$2m End of term 4.8% p.a. (-0.2)
11 months $5,000-$2m End of term 5% p.a. (-0.1)
12 months $5,000-$2m End of term 4.8% p.a. (-0.2)

They go low, Macquarie goes higher

While other deposit takers have been lowering their rates over the past month, Macquarie Bank has been tweaking higher on its shorter-term rates.

After lifting four- and six-month term deposit rates for amounts between $5,000 and $1 million last week, they've undergone another five-basis point rise this week to pay 4.99% p.a. with end of term payments.

Other TD rate movers

The Mutual Bank has shaved 20 basis points off its six- and 12-month term deposit rates for sums between $1,000 and $499,999.99 and $500,000 and $1 million.

The cuts apply across the board for end of term, annual, semi-annual, quarterly, and monthly payments.

The best new rate is 4.6% for sums between $500,000 to $1 million deposited for six months with end of term payment.

Finally, Beyond Bank has cut 10 basis points off its SMSF term deposit rate to 4.95% p.a. for amounts between $100,000 and $5 million invested for 11 months with interest paid end of term.

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