Term deposits April snapshot: Judo Bank leads the way

Tara McCabe

Wednesday 06 May 2020

If you were following term deposit rates in April, then your head is probably in a bit of a spin. 

Woman taking photograph - term deposits April snapshot.

While a number of credit unions and banks actually upped interest rates for term deposits, countless others were cutting. In fact, we counted 37 term deposit rate increases in April and 123 cuts. At the end of it all, Judo Bank came out on top with rates of 2.00% and above.

Cuts outweigh increases 

As our banking expert Peter Marshall observed in the April 2020 Mozo Banking Roundup, while fewer term deposit rates were cut than in March, there was still a general trend downwards in April.

Judo Bank cut rates on its previous market leading three, six, nine and twelve month term deposits, leaving the top spots open for other banks and credit unions including Qudos Bank, Transport Mutual Credit Union and Firstmac. 

The new most competitive rates in the Mozo database are:

That said, if you’re after a longer term, then Judo Bank is definitely still in the race. Despite making a number of cuts, Judo Bank still has the most competitive rates on offer in the Mozo database for two year, three year, four year and five year terms. 

The rates are as follows:

  • 2 year term deposit - 2.00% p.a.
  • 3 year term deposit - 2.05% p.a.
  • 4 year term deposit - 2.10% p.a.
  • 5 year term deposit - 2.15% p.a.

RELATED: April savings account snapshot: Further cuts leave BOQ sitting pretty at 2.00%

Three of the big four banks made cuts in April

Among the 123 term deposit rate cuts in April were those made by three of the four major banks, ANZ, Commonwealth Bank and Westpac. NAB made no changes to its term deposits in April.

The cuts were as follows:

  • ANZ - After shaving off as much as 25 basis points to the majority of its rates last month, ANZ’s term deposit interest rates now start from as low as 0.15% p.a. to 1.35% p.a. (8-month ANZ Advance Notice Term Deposit).
  • Commonwealth Bank - The Commonwealth Bank joined the ranks of providers cutting rates in April, slicing 10 basis points off most of its term deposit rates and a significantly larger 40 basis points off its 1-year term deposit rate. Its term interest rates now range from 0.25% p.a. to 1.30% p.a.
  • Westpac - Last but not least, Westpac ended its 1.70% p.a. 7-month term deposit special in April and took off 25 basis points for a number of its terms. Term deposit rates for Westpac now range from 0.25% p.a. to 1.20% p.a. (the latter with its newly introduced 1-year Westpac Term Deposit Special).

1-year term deposit rates up after RBA cut

Despite all the rate cuts to term deposits in April, there was a silver lining: between the RBA’s emergency cash rate cut on 19 March and now, the average 1-year term deposit rate has actually gone up from 1.32% p.a. to 1.39% p.a.^

Term deposit interest rate increases ranged from as little as five basis points to as much as 70 basis points. So if you’re looking to lock your money away for the next year, now might be the time to compare 12-month term deposits.

Want to know how the rest of the banking world faired in April? Read our April 2020 Mozo Banking Roundup for a thorough breakdown of what went on in finance last month.

^Average term deposit rates taken from information available in the Mozo database, correct as of 1st May 2020.

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