Commbank drops term deposit rates after 2.7% inflation figure posted

By Cameron Thomson · · 2 min read
Fact Checked
Advertiser disclosure
Customer at Commonwealth Bank ATM

After the RBA announced yet another hold in the cash rate on Tuesday, Commbank has cut most of its term deposit rates by 10-15 basis points from 4 months up to 5 years, while only increasing its 1-year rate by 35 basis points. 

The country's biggest bank also removed 1-year and 2-year rates for its special term deposits while reducing the 9-month rate to 4.75% p.a.

Commbank term deposit changes: 

Annual Term
Old Rate
New Rate
1 year 
4.00% p.a.
4.35% p.a.
2 years 
3.80% p.a.
 3.70% p.a. 
3 years 
3.55% p.a.
 3.45% p.a. 
4 years 
 3.55% p.a. 
3.45% p.a. 
5 years 
3.55% p.a. 
3.45% p.a.
Special TD Term
Old Rate
New Rate
9 months
4.80% p.a. 
4.75% p.a.

Commbank hasn’t been alone in this decision. Over the past few months, many providers have been cutting term deposit rates for longer terms while leaving 1 year (and often lower) rates at a more competitive level. Part of this has to do with expectations—most providers expect rate cuts either at the end of 2024 or sometime next year.  

You can get a good look at how this works out by looking at the table below. Our team has crunched the numbers and averaged out the rates we track in the Mozo database. 

Term Deposit Rate Averages
(All Personal TDs at $25,000*)
Term Length
Rate (p.a.)
9 month
4.27%
1 year
4.47%
2 years
3.94%
3 years
3.76%
4 years
3.59%
5 years
3.61%

*as of 26 September 2024

Inflation figures point the way

These new rates come off the back of recent inflation figures from the Australian Bureau of Statistics showing a rise of only 2.7% in the 12 months to August compared to last month's 3.5%. 

However, it should be noted that recent figures are likely influenced by government energy rebates so both the RBA and banks will be waiting to see how the quarterly CPI figures track alongside this.

See also: When will interest rates finally come down? for a breakdown of where the latest rate cut predictions stand.

Overall, term deposit rates are still sitting at a fairly good level for the moment. If you’re interested in signing up for a provider, you can check out our term deposit hub page and compare accounts today.

Term deposit comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 101 term deposits.
Last updated 3 October 2024 Important disclosures
  • Term Deposit

    5.00% p.a.
    7 months

    $5,000

    Yes up to $250,000

    No set-up or account keeping fees. Australian customer team. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Minimum deposit $5,000. Interest paid at maturity.

    Compare
    Go to site
    Details
  • Term Deposit

    5.10% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Great rates and incentives incl. 0.10% added loyalty bonus at renewal. Option to have interest paid to another bank. Winner of the Mozo Experts Choice Awards 2024^ for Term Deposits.

    Compare
    Go to site
    Details
  • Term Deposit

    4.00% p.a.
    3 months

    $5,000

    Yes up to $250,000

    No set-up or account keeping fees. Australian customer team. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Minimum deposit $5,000. Interest paid at maturity.

    Compare
    Go to site
    Details
  • SMSF Term Deposit

    5.10% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Apply digitally in minutes and manage your SMSF Term Deposit. Flexible cash flow management with three interest payment frequencies that suit you: monthly, yearly, or at maturity. Choose from terms of 3 months up to 5 years. No application or monthly account fees but eligibility criteria and terms and conditions apply. Only accessible to SMSFs with two or up to four individual trustees or one corporate trustee.

    Compare
    Go to site
    Details
  • Term Deposit

    4.95% p.a.
    6 months

    $10,000

    Yes up to $250,000

    Minimum $10,000 deposit. No account keeping fees. Terms from 3 months up to 2 years. Interest can be paid into a different bank. Balances up to $250,000 are guaranteed by the Australian Government. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

    Compare
    Go to site
    Details

* Different interest rates apply to different amounts or different interest payment frequencies.

^See information about the Mozo Experts Choice Term Deposit Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Today's term deposit rates