Macquarie launches new digital term deposit – does it change the game for savers?

Macquarie has launched a new digital term deposit product, offering rates up to 5.20%.

However, the new product is noticeably more restrictive, requiring a minimum deposit of $25,000, up from the previous minimum of $5,000, with terms that only extend up to a maximum period of 1 year. Previously individual and joint customers could opt for terms of up to 5 years.

At maturity, it rolls a customer’s money over to the bank’s savings account or transaction account which currently offers ongoing rates of up to 5.00%. 

Rate tracking from Canstar shows all four big banks currently offer at least one term deposit rate above 5.20%, with ANZ offering the highest rate among the big five banks at 5.30%.

None of the big banks charge admin fees on their term deposit accounts, with each one requiring a customer to provide 31 days notice if they want to access their money before the end of the fixed rate term.

By comparison, Westpac, NAB and ANZ, in most cases, automatically roll funds into a new term deposit at the current advertised rates, while CBA places the money into a holding facility that pays a lower interest rate until the customer provides further instructions. 

Source: Canstar. Notes: Macquarie’s rates and conditions relate to its digital term deposit with a minimum deposit of $25k.

While ANZ leads the big bank pack in relation to term deposit rates, it’s still a far cry from the market leaders. Canstar data shows the highest term deposit rate is 5.55% from Unity Bank for a period of 2 years.

Source: Canstar.

How do term deposits stack up against savings rates? 

Tracking by Canstar shows just three banks now offer at least one ongoing savings rate over 5.50% – Westpac, with its 5.75% rate for ages 18-40, MOVE Bank, which is available to all adults at a rate of 5.65% and BOQ with a rate of 5.60%, for young adults aged 14-35.

For each of these accounts, the rate is precarious because it firstly is at the whim of the RBA and out-of-cycle rate changes from the bank, but also, each one requires the customer to meet monthly conditions to qualify for this rate.

If they don’t, the interest rate can drop to 0.10%, or less in the case of BOQ.

Highest ongoing savings rates on Canstar

Source: Canstar. *BOQ conditions waived for ages 14-17.

Banks still competing for household deposits despite record levels of cash

Australians added another $2.7 billion to their deposits in May as the country remained focused on building up a savings buffer in term deposits, savings accounts, mortgage offsets and transaction accounts.

The latest APRA statistics show household deposits among authorised deposit-taking institutions (ADIs) reached a record $1.75 trillion in May, up $127.6 billion over the past year.

APRA total deposits by households

Source: APRA Monthly Authorised Deposit-taking Institution Statistics for May 2026, released 30 June 2026, prepared by Canstar. Deposits include term deposits, transaction accounts, mortgage offsets and savings accounts on the books of ADIs. 

Despite this, CBA’s household deposit book went backwards in May, the second dip this year. The drop was, however, a relatively minor 0.2% or $833 million. The bank still holds the lion’s share of deposits at 26% of all ADIs.

Macquarie continued to outpace its big bank competitors, increasing by $2.0 billion or 1.9% in the month, and an eye-watering 36% growth compared to a year ago.

Household deposits: APRA

Source: APRA Monthly Authorised Deposit-taking Institution Statistics for May 2026, released 30 June 2026, prepared by Canstar. Deposits include term deposits, transaction accounts, mortgage offsets and savings accounts on the books of ADIs. Share held in term deposits is from big banks’ results for Mar 26 for Westpac, NAB, ANZ and Dec 25 for CBA. 

Make sure to shop around

Canstar's Data Insights Director, Sally Tindall, says, “Macquarie’s new digital term deposit is a sign the competition for household deposits is still relatively strong, but this new product doesn’t rewrite the rule book or break any interest rate records. In fact, all four major banks are already offering at least one term deposit rate that’s higher than Macquarie’s offer.”

“If you’re prepared to look beyond the biggest banks, there’s even more on the table. The top rate on Canstar’s database is currently 5.55 per cent, meaning savers who shop around could earn a noticeably better return than sticking with their everyday bank.

“A term deposit can be a great option if you’re happy to lock your money away, but don’t focus solely on the headline rate. Check the term length, understand the conditions for accessing your money early and make sure the account suits your savings goals before signing up. 

“Australians continue to squirrel money away, with household deposits climbing to a record $1.75 trillion. After months of rising interest rates, many households have made building a financial buffer a priority, particularly while the economic outlook remains uncertain.

“Banks know deposits are valuable funding, which is one reason we’re continuing to see decent competition for savers.

“Macquarie continues to punch above its weight when it comes to attracting deposits. Its household deposit book has grown by 36 per cent over the past year, suggesting its strategy of competing hard on savings products is resonating with Australians.

“Whether you’re considering a term deposit or a savings account, the message is the same: shop around.”