Many banks now offer 6.1% pa term deposit rates for any term between 6 & 36 months, but SBS Bank's new 6.7% one year special rate stands out

Now things are getting really interesting!

SBS Bank has launched a limited-time offer of 6.70% for a one year term deposit.

It is a 'special offer' only valid until November 7. A minimum deposit of only $1000 is required for these "term share investments". Interest can be paid monthly, quarterly or at maturity.

This SBS Bank offer effectively spreads the high rates around more banks.

In fact, across all banks, you can get a term deposit offer of 6.10% or more for any term of six months to three years.

Bank of China offers 6.10% for a six month term.

For nine months you can get 6.15% from Bank of China, or Rabobank.

For one year every bank bar ANZ, Kookmin Bank, Westpac and TSB offer 6.10% or more, with today's SBS Bank offer the standout at 6.70%. Westpac is the only one lower than 6%.

Update: Westpac has also updated rates today now, raising them to levels consistent with their main rivals, although their new 18 month rate is now the best of the main banks.

Update II: Now ANZ has also raised its term deposit rate offers (as well as raising its carded home loan rates) "to reflect the recent increases in wholesale swap rates" they say. However, none of ANZ's updated term deposit rates are at market-leading levels.

For 18 months Rabobank and Bank of China offer 6.10%. Update: So does Westpac now.

For longer terms. you can get 6.10% from Rabobank for two years, and the same rate from ASB for three years.

But nothing currently comes close to SBS Bank's limited-time 6.70% offer for a one year term deposit.

What makes the 6.7% level interesting is the after-tax equivalents. They are now almost equivalent to Consumer Price Index inflation for most taxpayers on a 17.5% income tax rate.

This is the closest any saver has come to covering inflation in more than 15 years.

At the same time, SBS Bank has raised its reverse mortgage floating rate to 9.95%, a 20 basis points rise. That compares with Heartland Bank's 9.98% rate for its reverse mortgage clients.

Savers and borrowers alike should remember you can negotiate with any bank over their carded rate offers. You won't get a better rate if you don't ask. Whether a better rate is offered to you is up to the bank, and their perceptions of you, your financial situation and how important they feel it is to gain or retain your business. Many bank officers have some minor discretion on rates.

An easy way to work out how much extra you can earn is to use our full function deposit calculator. We have included it at the foot of this article. That will not only give you an after-tax result, you can tweak it for the added benefits of Term PIEs as well. It is better you have that extra interest than the bank, especially if you are in the 39% tax bracket - PIEs are taxed at 28% flat.

The latest headline rate offers are in this table after the recent increases.

for a $25,000 deposit October 24, 2023	Rating	3/4 mths	5 / 6 / 7 mths	8 - 11 mths	1 yr	18mth	2 yrs	3 yrs
Main banks
ANZ	AA-	4.30	6.00 +0.15	6.00 +0.15	6.10 +0.10	6.00	6.00 +0.30	5.50 +0.25
	AA-	4.20	6.00	6.10	6.10	6.00	6.00	6.10
	AA-	4.30	6.00	6.00	6.10	6.00	6.00	5.45
	A	4.40	6.05	6.10	6.15		5.80	5.50
	AA-	4.30	5.95 +0.15	6.00	6.00 +0.10	6.10 +0.30	5.90 -0.10	5.50
Other banks
Bank of China	A	5.10	6.10	6.15	6.25	6.10	6.05	5.85
China Constr. Bank	A	5.00	5.90	6.00	6.10	6.00	5.80	5.50
Co-operative Bank	BBB	4.20	5.95	5.90	6.10	6.00	5.90	5.80
Heartland Bank	BBB	5.50	5.90	6.00	6.10	5.90	5.90	5.85
ICBC	A	5.00	6.00	6.05	6.15	6.05	6.00	5.55
Kookmin Bank	A	4.40	5.60	5.70	6.00		5.20	5.20
	A	5.05	6.05	6.15	6.30	6.10	6.10	5.90
	BBB	4.20	5.85	5.70	6.70 +0.70	5.90	5.90	5.90
	A-	4.25	5.75	5.80	6.00	6.00	5.90	5.80