Competitive pressure has now raised a key term deposit rate at a key challenger bank up to a level that compares well with the variable and less certain at-call rates on offer elsewhere

Two more banks have shifted their term deposit offers, one of them - market leader Commbank - has only made a small tweak.

Commbank has raised its 2 year TD rate by +5 bps to 3.40% for its $5000-$49,999 tier level. That now matches its $50,000+ tier level rate. To be fair, it will have minor demand given rates are rising generally and are higher for shorter terms.

The more interesting change comes from challenger bank ING. This latest change comes just three weeks after their last change when they dropped as many rates as they raised.

This time they added most of them back, and added some premium for good measure. The net result are rate offers higher than in early September. Most ING term deposit rates are now over 4% which makes them quite competitive - not only with their peers and the main bank offers, but also against the attractive savings account offers from rivals too.

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4.35% fixed for six months from investment grade ('A') rated ING compares well with Macquarie's ('A+') 4.25% standard savings account rate, without the risk that at-call savings accounts have of variable rate changes.

In fact, 4.35% for six months is the highest rate for that term among the ten largest banks that we current cover.