In a somewhat surprising move, banks are lifting some of their term deposit rates despite the Reserve Bank of Australia slashing the cash rate to an all-time low of 0.25% on March 19.

It comes after Australia's biggest bank, the Commonwealth Bank, announced it would lift its 12-month term deposit rate by 60bps to 1.7%.

According to Commonwealth Bank, it offers term deposits with terms (the length of time your money is deposited) ranging from a minimum of one month to a maximum of five years. You can use Canstar’s term deposit calculator to help you work out what term length might be suitable. Commonwealth Bank of Australia issues all products mentioned on this web page. View our Financial Services Guide. View Product Disclosure Statement (PDS) and our General Information and Terms and Conditions for Term Deposits, and consider them before making any decision about these products. First Commonwealth Bank CD rates are competitive for a regional bank but not as competitive when compared to online CD rates. For example, the best CD rates offered at First Commonwealth Bank are at 0.70 percent on the bank's 60-month certificate of deposit. According to Commonwealth Bank, when a term deposit reaches the end of its term, you have the option of withdrawing part or all of the deposit, plus any interest earned. You can also reinvest the money under a new term or place it in a holding facility until you decide what to do. Looking at historical term deposit rates can help you understand that rates are constantly changing and how the economy influences the interest rate. Commonwealth Bank of Australia.

At the time, CBA chief executive Matt Comyn said the increase would support the bank's customers during this period of uncertainty.

'These are unprecedented times, and they call for unprecedented measures,' he said.

'Following today's reduction in the official cash rate by 25bps we are taking deliberate steps to further support parts of the economy most in need.'

Lifting the term deposit rate would support customers who are reliant on their savings, he said.

'For our deposit customers, we will increase our 12-month term deposit rate by 60bps to 1.70% p.a. This will be available to all personal customers, but will especially benefit older Australians relying on their savings,' Comyn said.

'It will ensure all Australians are now able to earn a return on their savings which is more than 1.45% higher than the official cash rate.'

Since the announcement, 25 other banks have followed suit, including Westpac, NAB, St George, Suncorp, Bank of Melbourne, Bank of Queensland, HSBC and Macquarie Bank.

Westpac acting chief executive Peter King said the bank was determined to assist customers during the crisis.

'This is a once in a lifetime event and a united response by government, regulators and corporate Australia is exactly what we need,' he said.

While NAB chief executive Ross McEwan said the bank would be lifting its term deposit rates in recognition that the current low interest rate environment is hurting savers.

'Our focus is clear - to support business and personal customers with their financial needs when they need it most,' he said.

'NAB is open for business. We continued lending throughout the Global Financial Crisis and we'll continue to lend through this.'

Analysis by RateCity.com.au found that just 2% of term deposit rates on its database offer interest returns that are equal to, or above inflation (1.8%).

The highest rate was for a five-year term deposit from Judo Bank, it said, with an interest rate of 2.15% p.a.

This was followed by Westpac (2% for eight months), First Mac (1.95% for six months), Arab Bank (1.9% for six months), and Bank of Us (1.85% for seven months).

RateCity.com.au research director Sally Tindall said that while term deposits no longer provide investors with stellar returns, they still are better than cash.

'Term deposits were once a popular option to get a consistent return on equity. Now, they are little more than a safe place to park your cash,' she said.

'While the days of double-digit interest on term deposits are behind us, that doesn't mean people should just throw their hands up in the air and do nothing.'

She applauded the banks for assisting consumers during the current period of volatility.

'It's great to see banks boosting at least one of their term deposit rates to give people an opportunity to get just that little bit more at this difficult time,' Tindall said.

'Increasing term deposit rates will especially benefit retirees, who rely on the interest they earn from their savings.

'Notably, Westpac will this week start offering a market-leading rate of 2% for an eight-month term deposit for people aged 65 and over.'

Of the big four, CBA lifted term deposits for 12 months to 1.7%, with Westpac matching the same rate as CBA. NAB lifted rates 5bps higher to 1.75% for a 10-month period, while ANZ lifted its term deposit rates to 1.35% for an eight-month period.

Whichever authorised deposit-taking institution investors choose, the government will guarantee deposits of up to $250,000, Tindall said.

Many banks are waiving penalties related to breaking a term deposit as well, she said, for those who are affected by the COVID-19 crisis.

Judo Bank topped RateCity.com.au's one-year, two-year and three-year term deposit rates, with rates of 2.05%, 2% and 2.05% respectively.

We're cutting through the confusion to help you manage your money during the coronavirus outbreak. Click here for more on how COVID-19 could affect your job, budget, super and investments.

As you know that a Fixed Deposit (FD) is an investment option offered by banks that gives you higher rate of interest than a regular savings account. By investing in an FD, you can achieve your financial goals comfortably due to higher returns offered by it.

Commonwealth Bank Of Australia FD provides an option to deposit lump sum amount for a specific period, ranging from 7 days to 10 years. You can choose any of the tenures offered by Commonwealth Bank Of Australia FD according to your convenience and financial objective. As soon as you select the tenure and deposit the amount in Commonwealth Bank Of Australia_ FD, it will start earning an interest based on the tenure of the deposit. Customer is allowed to deposit lump sum money into a fixed deposit only once into his FD account at the time of opening the account with the bank and afterwards he cannot deposit additional money in the same FD account.

You can also get tax benefits under section 80C of the Income Tax Act on an amount between Rs. 100 to 1.5 lakh by investing in Commonwealth Bank Of Australia FD for a tenure of 5 years or more.

Following table provides you Commonwealth Bank Of Australia FD Rates of various tenors. Also, given below is the facility/ option, through which you can calculate the interest rate and the maturity value of your Commonwealth Bank Of Australia FD for different tenures by clicking on the 'calculate' button provided in the table.

Commonwealth Bank Of Australia Fixed Deposit Interest Rates (as on 06 Mar 2021)

Features & Benefits: Commonwealth Bank Of Australia Fixed Deposit

• Competitive interest rates are offered with flexible FD tenures to suit your investment plan.
• FD account can be opened online or by visiting your nearest Commonwealth Bank Of Australia branch.
• No cap on the Maximum Amount of FD
• FD Tenures: 7 days to 10 years
• Different interest payout options such as monthly, quarterly, etc.
• Loan/ Overdraft against FD facility is available upto 85% of the FD amount.
• Easy and fast liquidity options are available.
• Nomination facility is available.
• Tax benefit of amount up to Rs 1,50,000, through tax saving term deposit scheme
• Part withdrawal facility and auto-renewal facilities are also available
• Senior citizens can enjoy higher interest rate as compared to regular citizens
• NRE, NRO and FCNR deposit facility is offered by the bank

Who is Eligible for Commonwealth Bank Of Australia Fixed Deposit

Any of the following persons is eligible to invest in fixed deposits (FD):

• Individual
• Minor
• HUF
• Proprietary Firm
• Partnership Firm
• Limited Liability Partnership (LLP)
• Company
• Association of Persons (AOP)
• Body of Individuals (BOI)
• Local Authority
• Trust
• Non-Resident Indian (NRI)
• Registered Society

Important Things to Know Before Investing in Fixed Deposits

• Always compare tenure-wise FD interest rates of different banks before finalizing the bank for opening an FD account, in order to get maximum interest rate on selected tenure.
• The tenure for most bank fixed deposits varies from 7 days to 10 years. You should choose the FD Tenure according to your convenience and objective behind investment.
• Opt for interest payout options such as monthly or quarterly, if required. Otherwise, choose cumulative option so that you can receive lump sum amount when FD gets matured.
• You can also avail loan or overdraft against FD, if you have immediate requirement of funds.
• If your annual income is non-taxable, you can submit Form 15G or Form 15H in order to avoid TDS.
• Don't forget to make nomination in your FD account.
• If you are a senior citizen then open your FD in a bank which offers extra interest of 0.25% to 0.75% to senior citizens.
• When you open fixed deposit online or offline, do not forget to give instructions on what to do on maturity of your FD. If you do not give any instruction, your fixed deposit will be renewed automatically on maturity.

Calculation of Interest on FD of Commonwealth Bank Of Australia

Interest on FD for different tenures is calculated in following manner:

1. Simple interest is paid at maturity for fixed deposit tenure of less than 6 months.
2. Interest is calculated on a quarterly basis for fixed deposit tenure of 6 months & above.
3. Cumulative Interest/ re-investment interest is calculated every quarter, and is added to the Principal such that Interest is paid on the Interest earned in the previous quarter as well.
4. In case of monthly deposit scheme, the interest shall be calculated for the quarter and paid monthly at discounted rate over the Standard FD Rate

Commonwealth Bank Of Australia FD Interest Calculator

Commonwealth Bank Of Australia FD Interest Calculator is an online financial tool that allows you to calculate the maturity value of your fixed deposit at the interest rate offered by bank. The amount of FD, interest rate, deposit tenure and compounding frequency of interest together determine the maturity amount of the FD at the end of the tenure.

Commonwealth Bank Term Deposit Rates Calculator

Automatic Renewal of Bank FD

Bank FD matures on specific date. On maturity, if you have not given any specific instructions such as payout or renewal of FD, most of the banks automatically renew the FD for the same period for which it was initially made at the interest rate prevailing on the date of maturity of FD. This is called Automatic Renewal of Bank FD.

You should choose the option on the account opening form, if you do not want the bank to auto renew your FD. You have 2 options on the account opening form while depositing money in FD, first one is auto renew and second one is deposit of amount to your account after maturity. In case you have not mentioned any option on the account opening form then you will need to visit the bank branch on maturity day of your bank FD and opt for credit of the final proceeds of your bank FD into your savings account if you do not want an auto renewal of your FD.

Bank FD News Mar 2021

13-01-2020: SBI revised FD interest rate

SBI has announced a cut in retail fixed deposits of FD rates. The latest FD rates on SBI deposits is effective from 10th January 2020. The bank has cut the FD rates by 15 bps on long-term deposits maturing in 1 year to 10 years. Now FD interest rate for 7 to 45 days is 4.50%, for 46 to 179 days is 5.50%, for 180 days to 1 year is 5.80% and for 1 year to 10 years is 6.10%.

09-01-2020: Axis Bank reduced FD interest rate

Axis Bank reduced interest rates by up to 20 bps from January 9. FDs for less than Rs 2 crore and with the tenor of less than 1 year will earn 6.40%, for the tenor of 5 years to up to 10 years, FD rates is 6.50%.

07-01-2020: HDFC Bank deposits up by 25% (YoY) in 2019

Commonwealth Bank Term Deposit Rates Business

The largest private sector lender HDFC Bank's deposits up by 25% (YoY) in 2019. Its deposits are at Rs 10.67 trillion as of December 31, 2019 growing by 25% as compared to Rs 8.52 trillion as of December 31, 2018..

24-12-2019: HDFC Bank revised FD interest rate

The revised rate for FDs maturing in 9 months 1 day to less than 1 year will be 6.05%. Term deposits maturing in 1 year to 2 years will fetch an interest rate of 6.3%, 2-3 years 6.40%, and 3 years to 10 years 6.3%.

01-12-2019: PNB cuts off FD rates

With effect from December 1, 2019, FDs for less than Rs 2 crore and the tenor of 271 days to below 1 year will be 6% for general customers and 6.5% for senior citizens. For the tenor of 5 years to up to 10 years, PNB has FD rates of 6.3% for general customers and 6.8% for senior citizens.

12-11-2019: ICICI Bank reduces FD interest rate

The interest rates on ICICI Bank FD for less than Rs 2 crore and the tenor of 185 days to 289 days will be 5.75%, for 5 years to up to 10 years will be 6.40% and 6.9% for senior citizens. Its interest rates will be effective from December 7, 2019.

Public Sector Banks FD Interest Rates

Westpac Bank Term Deposit Rates

Private Sector Banks FD Interest Rates

Commonwealth Bank Of Australia Term Deposit Rates