Australia’s term deposit market is heating up in the lead-up to a potential Reserve Bank of Australia (RBA) cash rate cut, with several banks revising their rates in response to economic shifts. Savers and investors seeking fixed-term returns now have a wealth of options to consider. Here’s the latest snapshot of rate changes and what they could mean for your financial strategy in 2025.
A Surge in Competitive Rates
| Term length | Deposit amount | Payment frequency | Interest rate (% change) |
| Six monthsInvestment Plus | $1,000-$250,000 | End of term | 5.10% p.a. (+0.15) |
| Nine months Investment Plus | $1,000-$250,000 | End of term | 4.90% p.a. (+0.30) |
| Six months Income Plus | $1,000-$250,000 | End of term | 5.00% p.a. (+0.15) |
| Nine months Income Plus | $1,000-$250,000 | Monthly | 4.80% (+0.30) |
| Six months Teen plus | $500-$250,000 | End of term | 5.10% p.a. (+0.15) |
| Nine months Teen plus | $500-$250,000 | End of term | 4.90% p.a. (+0.30) |
Australian Military Bank has raised the bar with its six-month Investment Plus and Teen Plus term deposit rates, now at a competitive 5.10% p.a. for amounts between $500 and $250,000. These hikes match AMP Bank’s market-leading rates for smaller deposits, keeping the Military Bank in the top-tier pack.
Meanwhile, AMP Bank retains its leading position, offering a six-month term deposit rate of 5.15% p.a. for investments above $25,000. This rate gives investors a lucrative opportunity to lock in high returns ahead of potential cash rate cuts.
ING and Macquarie Trim Their Rates
| Term length | Amount deposited | Payment frequency | Interest rate (% change) |
| Three months | $10,000-$5m | End of term | 4.90% p.a. (+0.05) |
| Six months | $10,000-$5m | End of term | 4.90% p.a. (-0.20) |
| One year | $10,000-$5m | End of term | 4.70% p.a. (-0.25) |
| One year | $10,000-$5m | Annually | 4.70% p.a. (-0.25) |
Despite its earlier competitive edge, ING dropped its six-month rate to 4.90% p.a., a reduction of 20 basis points, while also trimming its one-year rate by 25 basis points.
| Term length | Deposit amount | Payment frequency | Interest rate (% change) |
| Three months | $5,000-$1m | End of term | 4.65% p.a. (-0.10) |
| Four months | $5,000-$1m | End of term | 4.60% p.a. (-0.05) |
| Six months | $5,000-$1m | End of term | 4.60% p.a. (-0.05) |
| Three months | $1,000,001-under $10m | End of term | 4.4% p.a. (-0.10) |
| Six months | $1,000,001-under $10m | End of term | 4.35% p.a. (-0.05) |
Macquarie followed suit, reducing its short-term rates by up to 10 basis points, leaving its six-month term deposit rate at 4.60% p.a. for deposits up to $1 million.
These changes reflect a recalibration among institutions as they anticipate shifts in monetary policy.
Regional and Customer-Owned Banks Enter the Spotlight
- MyState Bank, based in Tasmania, made a bold move with a 5.00% p.a. rate for six-month term deposits on amounts starting at $5,000.
| Term length | Deposit amount | Payment frequency | Interest rate (% change) |
| Six months online deposit | $5,000-under $100m | End of term | 5.00% p.a. (+0.40) |
| Six months regular deposit | $5,000-under $100m | End of term | 5.00% p.a. (+0.40) |
- Bank of Sydney grabbed attention with a dramatic hike in its eight-month rate to 5.08% p.a., although its nine-month rate was reduced to 4.65% p.a.
| Term deposit | Deposit amount | Payment frequency | Interest rate (% change) |
| Eight months | $1,000-$1m | End of term | 5.08% p.a. (1.18) |
| Nine months | $1,000-$1m | End of term | 4.65% p.a. (-0.40) |
- Beyond Bank offered mixed changes, boosting three-month rates by 35 basis points to 4.70% p.a. for larger deposits, while lowering its nine-month rates by 10 basis points.
| Term length | Deposit amount | Payment frequency | Interest rate (% change) |
| Three months | $2,000-under $50,000 | End of term | 4.65% p.a. (+0.35) |
| $50,000-under $200,000 | End of term | 4.70% p.a. (+0.35) | |
| $200,000-under $100m | End of term | 4.7% p.a. (+0.35) | |
| Nine months | $2,000-under $50,000 | End of term | 4.45% p.a. (-0.10) |
| $50,000-under $200,000 | End of term | 4.50% p.a. (-0.10) | |
| $200,000-under $100m | End of term | 4.5% p.a. (-0.10) |
These moves by smaller and regional banks show a concerted effort to remain competitive, especially as savers look to lock in high rates before potential rate cuts.
Opportunities Amid Market Shifts
With the RBA’s next decision looming, the term deposit market reflects broader economic trends, including a cooling inflation rate and modest rises in unemployment. The potential for rate cuts makes now an opportune moment to secure fixed-term investments at attractive rates.
Take the First Step with Vantage Loans
Whether you’re looking to maximize your savings with a term deposit or explore alternative financial opportunities, Vantage Loans is here to guide you. With personalized advice and access to competitive products across the financial landscape, we’ll help you find the right fit for your goals.
Call 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.
