Australia’s largest bank, CommBank, has made adjustments to its term deposit offerings, cutting rates across most of its range. These changes come as speculation grows about an imminent Reserve Bank of Australia (RBA) cash rate cut in February.
CommBank term deposit rate changes
The top rate on offer from CommBank is now 4.75% p.a. for an eight-month term, available exclusively to existing customers. This follows moves by Macquarie and Judo Bank, which also trimmed term deposit rates earlier this week.
| Term length (LVR) | Deposit size | Payment frequency | Interest rate |
|---|---|---|---|
| 8 months | $5,000 – $1,999,999 | Annually | 4.75% p.a. (-0.13) |
| 8 months | $5,000 – $49,999.99 | End of term | 4.45% p.a. (+0.85) |
| 9 months | $5,000 – $49,999.99 | End of term | 3.55% p.a. (-0.90) |
| 10 months | $5,000 – $49,999.99 | End of term | 3.65% p.a. (-0.10) |
| 11 months | $5,000 – $49,999.99 | End of term | 3.75% p.a. (-0.10) |
| 8 months | $50,000 – $1,999,999.99 | End of term | 4.45% p.a. (+0.80) |
| 9 months | $50,000 – $1,999,999.99 | End of term | 3.60% p.a. (-0.85) |
| 10 months | $50,000 – $1,999,999.99 | End of term | 3.70% p.a. (-0.10) |
| 11 months | $50,000 – $1,999,999.99 | End of term | 3.80% p.a. (-0.10) |
| 12 months | $5,000 – $49,999.99 | Annually | 4.25% p.a. (-0.10) |
| 13-17 months | $5,000 – $49,999.99 | Annually | 4.25% p.a. (-0.10) |
| 12 months | $50,000 – $1,999,999.99 | Annually | 4.30% p.a. (-0.10) |
| 13-17 months | $50,000 – $1,999,999.99 | Annually | 4.30% p.a. (-0.10) |
Why These Changes Matter
CommBank’s latest adjustments align with its forecast of a 25-basis point RBA cash rate cut in February, supported by recent economic indicators. According to Chief Economist Stephen Halmarick, declining household spending and easing inflation bolster the case for monetary easing.
In December, household spending fell by 1.8%, and inflation appears to be moderating. While unemployment rose slightly to 4%, job creation remains robust.
What This Means for Savers
The era of near 5.5% term deposit rates appears to be drawing to a close. Savers might feel the pressure to act quickly before potential rate cuts erode these returns further. The highest rate in the market now stands at 5.15% p.a., offered by AMP and Heartland Bank for six- and nine-month terms, respectively.
For those looking to secure fixed returns, locking in current rates before February’s RBA meeting could be a prudent move.
Take Action with Vantage Loans
Are you considering term deposits or other investment options? At Vantage Loans, we can guide you through the best opportunities to grow your savings or meet your financial goals.
Contact us today at 1800 595 500, email us at support@vantagefinancial.com.au, or visit vantagefinancial.com.au to explore your options and secure your financial future.
