Australian banks adjust term deposit rates amid market competition

Major Australian banks are adjusting their term deposit rates. Westpac Banking Corp has introduced a 12-month online-only special rate of 5.20% p.a. for existing customers, matching a rate previously offered by Commonwealth Bank. Westpac's branch-based rate for the same period is 5.10% p.a.

NAB has also moved to match the 5.20% p.a. rate for 12-month term deposits on amounts up to approximately $2 million, though rates vary based on interest payment frequency. This shift places NAB ahead of ANZ Bank, which currently offers a best rate of 5.15% p.a. for 12-month terms.

In terms of market valuation, Westpac's share price has recently traded around $34.22. Based on its FY24 earnings per share of $1.92, the company holds a price-earnings (PE) ratio of 17.8x, which is slightly below the banking sector average of 18x.