SYDNEY, July 18, 2026, 09:05 AEST
- The ASX cash market is shut for the weekend. Shares of Macquarie last closed at A$258.41 on Friday.
- The new one-year digital term deposit from Macquarie Bank offers a 5.20% rate on balances up to A$1 million.
- Macquarie’s upcoming investor event is the annual meeting set for July 23.
Macquarie Group Ltd ASX:MQG closed Friday trading 0.8% off its 52-week peak. The company’s recent focus on retail funding is increasing scrutiny on deposit margins.
Shares rose 1.5% between July 10 and Friday, while the S&P/ASX 200 dipped 0.1% in the same period. This put Macquarie ahead by roughly 1.6 percentage points.
The group unveiled its digital term deposit on Thursday, available in three, six, nine, and 12-month terms, with a minimum balance requirement of A$25,000.
The one-year rate stands at 5.20% for balances up to A$1 million. Current customers are able to apply online in just minutes. Deposits will not renew automatically.
Macquarie Bank’s head of deposits, Olivia McArdle, said the market was “well overdue for a shake-up.” Macquarie
Macquarie’s pricing is slightly undercutting the offers from three major banks:
| Provider | 12-month rate | Main conditions |
|---|---|---|
| Macquarie Group Ltd ASX:MQG | 5.20% | Applies to balances up to A$1 million; minimum of A$25,000 |
| Commonwealth Bank of Australia ASX:CBA | 5.25% | Special promotional offer for a limited time |
| National Australia Bank Ltd ASX:NAB | 5.25% | From A$5,000 up to A$1,999,999; interest paid at term end |
| Westpac Banking Corp ASX:WBC | Up to 5.25% | Digital offer for eligible current clients |
The five-basis-point difference is minimal, giving Macquarie only a slight edge in funding costs compared to its peers.
For example, raising A$10 billion at 5.20% results in a yearly cost of A$520 million, while a rate of 5.25% would increase this by just A$5 million. This calculation does not factor in hedging, reserve requirements, deposit composition or income from lending.
The move puts greater emphasis on service. Macquarie retains interest accrued before a saver gives early-withdrawal notice, after which no interest is paid during the mandatory 31-day notice period.
Upon maturity, funds transfer to a connected account rather than automatically renewing. This approach may boost customer acquisition but introduces less predictability in retained balances.
Scale drives the trade-off. Deposits climbed 25% to A$221.5 billion as of March 31. Preliminary estimate: the gain was about A$44 billion, based on Macquarie’s rounded growth rate.
Banking and Financial Services reported a 17% increase in profit to A$1.61 billion for FY26, supported by higher loan and deposit volumes. Margins narrowed due to competition and changes in portfolio mix.
Group profit increased by 30% to A$4.847 billion, surpassing the Visible Alpha consensus of A$4.39 billion. Return on equity was 14.0%. Shares are valued at 20.4 times trailing earnings.
The main event next week is the July 23 annual meeting, set for 10:30 AEST in Sydney. Proxy voting will end at 10:30 AEST on July 21. Investors are expected to look for updates on deposit pricing, margins, and capital allocation.
Risks: A competition for deposits may compress margins more rapidly than balances increase. Income from commodity trading may fluctuate due to market volatility. The group remains exposed to changes in rates, geopolitical issues and regulatory factors.
Macquarie’s recent strong performance increases the standard. The new product needs to attract funds with convenience rather than higher rates.
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