Three banks including a major raise term deposit rates, and one challenger bank cracks the 5% barrier as the fight extends for household deposit funding

The rise and rise of term deposit offers has now resulted in the five percent offer threshold being reached.

Today (Wednesday, March 11), both Bank Australia, and cousin Qudos have launched a 5.0% rate for a one year term deposit.

And they aren't the only bank moving TD rate offers up toiday. Importantly, Macbank has added +5 bps and +10 bps to three key terms (6 months, 9 months, and 1 year) which takes their one year TD rate to 4.90%.

And ING has raised all its rates for terms 3 months to 2 years by another +10 bps. That has resulted in their one year rate reaching 4.90% as well.

And don't forget that as we have previously reported, AMP Go's one year rate is now 4.95%.

The tough facts are that Macquarie has momentum. It is hard for challenger banks to grab the attention of savers from Macbank. But high rates can do it. Both Bank Australia, and ING have been winning outsized market shares as challenger banks even in the face of the Macquarie momentum, as APRA data shows.

However, all eyes will be on Macquarie's rate reviews next week to see it they too push up to or through the 5% threshold.