Sydney, May 3, 2026, 23:01 (AEST)
Commonwealth Bank of Australia bumped up its 12-month term deposit special to 5.20% per annum, as the competition for household savings heats up just ahead of the Reserve Bank of Australia’s upcoming interest-rate call. According to the bank’s rates page, the new offer is set to kick in from May 1 and is limited to 12-month deposits.
Cash is getting a fresh look in the banking system. The RBA’s cash rate target—its overnight benchmark—sits at 4.10%. Traders are waiting for the next policy decision, scheduled for 2:30 p.m. on May 5.
According to a Reuters poll out Friday, 30 out of 33 economists see the RBA lifting the cash rate by 25 basis points to 4.35% on May 5. The survey shows ANZ, CBA and NAB are calling 4.35% the cycle’s top. Westpac, though, is looking for a move up to 4.85%.
CBA customers now have access to a higher fixed-rate term deposit at the country’s biggest listed bank. With term deposits, savers swap flexibility for certainty: funds are locked in for a chosen period, and early withdrawals typically aren’t allowed.
CBA has rolled out a special offer for balances between A$5,000 and A$5 million, featuring annual interest payments under its latest terms. For term deposits spanning 24 to 33 months, rates show a split: 5.20% applies to amounts from A$5,000 up to A$49,999, while larger deposits—from A$50,000 up to A$5 million—get 5.25%.
CBA’s offer still trails rivals. Savings.com.au’s May 1 comparison puts ANZ ahead at 5.25% for a 12-month term deposit, with CBA following at 5.20%, while NAB and Westpac sit at 5.10% for similar one-year products. Eligibility, notice requirements, and interest payment timing all vary between banks.
NAB advertises 5.10% for 12-month deposits between A$5,000 and A$1,999,999, according to its rates page. Westpac, on its side, is offering a 12-month special rate of up to 5.10% for online openings or renewals—a combination of a 5.00% fixed special and a 0.10% online bonus.
CBA finished Friday at A$173.04, slipping 0.36%. The ASX 200, by contrast, was up 0.74% near 8,730. With the cash market shut Sunday night, standard trading hours continue until 4 p.m. Sydney time on regular business days.
CBA economists described the upcoming May RBA meeting as a tight one to call. “The inflation problem has not yet been solved,” said Trent Saunders, senior economist at the bank. For Belinda Allen, who heads Australian economics at CBA, the May rate decision is shaping up as “another line ball decision.” CommBank
“Inflation is basically too high in Australia,” AMP economist My Bui told Reuters, pointing to the argument for another hike. Westpac’s Luci Ellis, chief economist, flagged that the rate outlook after May remained “necessarily less certain.” Reuters
But there’s a caveat. According to CBA, term deposit rates might shift at any time and, for early withdrawals, customers are required to give 31 days’ notice. They could also be hit with a prepayment interest adjustment and an admin fee. If there are no maturity instructions, the money gets swept into a holding account paying just 1.10%.
Tuesday brings the RBA decision, a key test. Should the central bank deliver the anticipated hike, banks could see renewed pressure—questions likely on the table: How much more will they offer depositors? How much gets handed down to borrowers?
