Term Deposit Rates Drop as RBA Cuts Cash Rate
With the Reserve Bank of Australia (RBA) reducing the cash rate to 4.10%, term deposit rates across major banks have followed suit. Macquarie, Bendigo, AMP, and Bank of Sydney are among the latest institutions to trim rates, reflecting market expectations of further rate cuts in 2025.
For borrowers, the RBA’s decision signals lower mortgage repayments, but for savers, this could mark the end of the high-interest term deposit era. As banks adjust their rates, now is the time for depositors to explore the best available options to maximize returns.
Latest Term Deposit Rate Changes
Macquarie Bank
Macquarie has shaved 5 basis points off its shorter-term rates for large deposits over $1 million.
| Term | New Rate | % Change | Interest Paid |
|---|---|---|---|
| 3 months | 4.30% p.a. | -0.05 | End of term |
| 4 months | 4.25% p.a. | -0.05 | End of term |
For deposits under $1 million, Macquarie’s best rate remains 4.60% p.a. for three months.
Bendigo Bank
Bendigo adjusted rates in both directions, boosting short-term deposits while trimming longer-term options.
| Term | New Rate | % Change | Interest Paid |
|---|---|---|---|
| 5 months | 4.00% p.a. | +1.00 | End of term |
| 6 months | 4.30% p.a. | +0.30 | End of term |
| 9 months | 4.20% p.a. | -0.20 | End of term |
| 12 months | 4.20% p.a. | -0.20 | End of term |
Bendigo’s best rate for deposits over $5,000 is now 4.30% p.a. for six months.
Bank of Sydney
Bank of Sydney, known for its aggressive term deposit pricing, cut 10 basis points off its highest rates.
| Term | New Rate | % Change | Interest Paid |
|---|---|---|---|
| 3 months | 4.85% p.a. | -0.10 | End of term |
| 6 months | 4.80% p.a. | -0.10 | End of term |
This marks a decline from its 5.50% peak in mid-2023.
AMP Bank
AMP made widespread cuts, slashing rates by up to 30 basis points across its term deposit products.
| Term | New Rate | % Change | Interest Paid |
|---|---|---|---|
| 3 months | 4.65% p.a. | -0.15 | End of term |
| 6 months | 4.60% p.a. | -0.15 | End of term |
| 12 months | 4.45% p.a. | -0.10 | End of term |
| 2 years | 3.95% p.a. | -0.30 | Annually |
AMP’s best rate is now 4.70% p.a. for three months (for deposits $25,000+).
Australian Military Bank
Previously a market leader in the 6-month term deposit category, Australian Military Bank cut rates by 20 basis points.
| Term | New Rate | % Change | Interest Paid |
|---|---|---|---|
| 6 months | 4.90% p.a. | -0.20 | End of term |
| 12 months | 4.65% p.a. | -0.15 | Annually |
This marks its exit from the 5% club.
What This Means for Savers & Investors
With the RBA now in an easing cycle, term deposit rates are likely to continue falling throughout 2025. Savers seeking high returns should consider locking in competitive rates before they drop further.
At Vantage Loans, we help you find the best savings and investment options tailored to your financial goals. Whether you’re looking for a high-yield term deposit, mortgage refinancing, or investment advice, our team is here to assist.
Speak to one of our financial specialists today by calling 1800 595 500, emailing support@vantagefinancial.com.au, or visiting vantagefinancial.com.au to explore your options.
