Term deposit rates have been on the rise for past few months, as banks seek to avoid rising wholesale funding rates by increasing the proportion of deposits funding their loan books.
According to the latest Mozo Banking Roundup, May was the third consecutive month during which increases in TD rates outnumbered cuts.
Last month, AMP increased all terms below 12 months by up to 35 basis points. It now leads the market for several terms.
Bank of Sydney increased its three, six and 12-month rates by up to 12 bps and now offers the best rates for those terms. It is offering 2.75 per cent for terms between six and 11 months.
Commonwealth Bank increased its nine-month rate by 10 bps and its subsidiary Bankwest raised its six-month rate by 15 bps and its 12-month rate by five bps.
Greater Bank increased its two, nine and 12-month rates by up to 25 bps. The 12-month rate is 2.75 per cent.
QBank increased a number of long-term rates. Its two-year rate of 2.9 per cent is the top rate for that term.
Suncorp, CUA and P&N bank all increased a number of rates by up to 10 bps.
RaboDirect increased one and two-year terms by 10 bps, and its four-year term by 25 bps to a market-leading 3.3 per cent.
Despite the growing number of deposit takers raising rates, top rates are unchanged except for very long terms.
The top rate on offer for a term under 12 months is 2.8 per cent, which ME is offering for seven and nine months.
The top rate for 12 months is 2.8 per cent, available from Bank of Sydney and ME.
The top rate for two years is 2.9 per cent, available from Defence bank, ING, Police Bank and QBank.
The top rate for three years is 3 per cent, available from Big Sky, Greater Bank, Heritage Bank, Maitland Mutual, ME, PCCU, QBank and Qudos Bank.
The top rate for four years is 3.3 per cent, available from RaboDirect. And the top rate for five years is 3.5 per cent, also from RaboDirect.
Among the big banks, for terms under 12 months ANZ is offering 2.5 per cent for nine months, Commonwealth Bank 2.55 per cent for nine months, NAB 2.5 per cent for eight months and Westpac 2.5 per cent for eight months.
For 12-month terms ANZ is offering 2.3 per cent, CBA 2.2 per cent, NAB 2.4 per cent and Westpac 2.3 per cent.