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Which banks have hiked term deposit and savings account rates in May 2023?

Mark Bristow avatar
Mark Bristow
- 3 min read
Which banks have hiked term deposit and savings account rates in May 2023?

Many Australians were taken by surprise when the Reserve Bank of Australia (RBA) chose to raise the national cash rate by 25 points to 3.85% in May 2023, following a pause the month before.

This may not be the last rate rise we’ll see in 2023, either. Some experts are forecasting at least one more increase to come, possibly in August 2023.

While borrowers may be bracing for higher repayments, Australians holding savings accounts and term deposits could potentially look forward to earning more interest on their wealth if the cash rate hike is passed on as higher interest rates. 

Term deposits

At the time of writing, only a few banks and Authorised Deposit-taking Institutions (ADIs) had announced term deposit interest rate hikes so far this May:

  • Commonwealth Bank announced following the RBA meeting that it will extend its 12-month 4.35% p.a. Term Deposit special.
  • MyState’s Term Deposit is to rise, with a 0.25% increase to the six-month terms to 4.40%, and a 2.50% increase to the five-month term to 4.50% effective 8 May 2023.
  • Suncorp Bank is offering Term Deposit interest rates of 4.3% for 7 months and 4.25% for 12 months.
  • Australian Military Bank has new Term Deposit specials of 4.50% for 5-to-9-month Term Deposits, available from 9 May.  

Keep in mind that term deposit customers may need to wait for their existing deposit to reach maturity and roll over before they can consider switching to a higher rate. Comparing term deposits can help you work out which options may offer you the most value.

Savings accounts

At the time of writing, the following ADIs have announced increases to their savings rates following the RBA hike: 

ADI

Rate Increase

Highest Rate

Date Effective

NAB

0.25%

4.50%

12 May 2023

Westpac

0.25%

4.50%

12 May 2023

Commonwealth Bank

0.25%

4.40%

12 May 2023

ANZ

0.25% (for balances less than $250,000)

4.50%

11 May 2023

Macquarie Bank

0.25%

4.25%

9 May 2023

St.George Bank

0.25%

4.75%

12 May 2023

Bank of Melbourne

0.25%

4.75%

12 May 2023

BankSA

0.25%

4.75%

12 May 2023

ING

0.25%

5.25%

9 May 2023

Bendigo Bank

0.25%

4.05%

12 May 2023

BankFirst

0.25%

4.85%

12 May 2023

BOQ

0.25%

4.85%

12 May 2023

Virgin Money

0.25%

5.10%

12 May 2023

Some savings accounts have specific eligibility criteria, such as age restrictions or maximum deposit amounts, which may make them better suited to some savers than others. Remember to compare savings accounts before you consider jumping ship, and keep an eye on RateCity’s Rate Tracker hub for more information on which banks are raising rates for borrowers and savers.

Compare term deposits

Product database updated 16 Apr, 2024

This article was reviewed by Personal Finance Editor Peter Terlato before it was published as part of RateCity's Fact Check process.