After Macquarie's high profile launch into a very high yielding savings account, Westpac moves to bolster its position to prevent leakage

Westpac has launched an eleven month term deposit 'special offer'.

For an limited time, that term deposit will pay 3.90% pa, if it is made via an online application. Via a branch or phone transaction it will be 3.80% pa.

That is a premium of 25 bps (0.25%) over what they offer for a one year term (but +55 bps over their 'normal' 11 month offer)

Why the song and dance? It is less than the Westpac Bump, or Life savings account offers that currently offer 4.50% pa, or the introductory Live Save&Spend 5.00% for balances to $30,000.

They may be feeling under pressure from MacBank and their teaser 4.85% offers for balances to $2,000,000.

This Westpac offer also targets balances to $2,000,000 (minimum $5,000).

It is designed to retain Westpac personal or business customers, rather than win new business.

You can compare all term deposit offers from the big five main banks here.