Three of Australia's Big Four banks have made a decision that some believe indicates the Reserve Bank of Australia (RBA) could cut interest rates this year. While RBA governor Michele Bullock warned Aussie homeowners not to expect any mortgage relief for the remainder of 2024, Commonwealth Bank (CBA), ANZ and NAB's movements suggest otherwise.

CBA has slashed its rates on all but one of its term deposit periods, with the 12-month rate falling by 60 basis points. NAB and ANZ have now followed this week, raising eyebrows that the RBA could be poised for a rate cut by December.

Canstar's director of data insights, Sally Tindall, believes banks are adjusting their numbers because they "don’t want to be locked in paying interest on term deposits at a rate that is ultimately unprofitable for them".

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CLSA analyst Ed Henning added that these rates will "continue to move" as the RBA drops interest rates.

“These things are dynamically priced, and they will continue to adjust them as rates shift and so does the demand for lending," he explained to the Australian Financial Review.

Traders believe there's an 89 per cent chance the RBA will deliver a 0.25 per cent rate cut by December.

Westpac is the only major bank that hasn't moved its term deposit rates.

The biggest term deposit return is 4.80 per cent per year and that kicks in at eight months at NAB and ANZ, nine months for CBA, and 11 months at Westpac.

For example, if you had $10,000 at a 4.80 per cent term deposit rate, you would be given $320 after eight months. That skyrockets to $32,000 in the same period if you had $1 million in the account.

Those returns are pre-tax, as money like that is considered taxable income in the eyes of the Australian Taxation Office.

Do you have a story? Email stew.perrie@yahooinc.com

What are CBA, ANZ and NAB's term deposit rate changes?

Below are the changes that Commonwealth Bank, ANZ and NAB have made in the past week with their term deposit rates:

Commonwealth Bank

• 3 Months: 3.20% p.a (-0.25)

• 6 Months: 3.45% p.a (-0.25)

• 9 Months: 4.50% p.a (+0.55)

• 12 Months: 4.00% p.a (-0.60)

• 2 Years: 3.80% p.a (-0.15)

• 3 Years: 3.55% p.a (-0.40)

• 4 Years: 3.55% p.a (-0.40)

• 5 Years: 3.55% p.a (-0.40)

NAB

• 3-4 Months: 3.25% p.a (-0.25)

• 6-7 Months: 3.60% p.a (-0.20)

• 8-9 Months: 4.80% p.a (+0.80)

• 12 Months: 4.50% p.a (-0.40)

• 3, 4 and 5 Years: 3.30% p.a (-0.50)