Challenger banks are seeing worrying leakage in their household deposit books. Now one of the most badly affected is offering 4.95% for a one year term deposit, a new market high

Fierce competition for household deposits has seen some one year rates rise to just a touch under 5%. (4.95% and 4.90%.) This is being driven by fears across competitors who are watching Macquarie hoover up massive amounts of deposits from their rivals. 

AMP Go's one year rate is now 4.95%, up from an already market-leading 4.85%.

AMP's household deposits are now down to just AU$9.0 bln, after peaking at at AU$10.6 bln in mid-2023. They are just one example of challenger banks being shocked by Macquarie. 

In the same period, Macquarie has gone from household deposits of AU$56.0 bln to now at AU103.2 bln. So it is no wonder challenger banks like AMP have to offer savers fat premiums. And sadly for them, even this isn't enough to stem the bleeding.

Check our term deposit tables here and here for the latest rates.

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Every challenger bank, except Bank Australia (which grew through acquisition) has lost share over this period. Clearly Macbank is the standout achiever.