A widespread increase in term deposit rates has been the surprise outcome of unprecedented monetary policy moves this month, with more than 20 banks increasing TD rates since the latest rate cut was announced last week.Banks are keen to lock in deposit funding and also want to show they are doing something for customers dependent on interest income.Comparison site RateCity reports that 25 deposit-taking institutions have raised rates on at least one of their term deposits. Commonwealth Bank got the ball rolling, increasing its 12-month TD rate by 70 basis points to 1.7 per cent.Westpac, NAB, St George, Suncorp, Bank of Melbourne, Bank of Queensland, HSBC and Macquarie Bank all followed suit.Judo Bank has the highest rate, offering 2.15 per cent for five years. It is also offering 2.05 per cent for 12 months and 2 per cent for two years.Other leading rates include Westpac's offer of 2 per cent for eight months (for people aged 65 and over), FirstMac's offer of 1.95 per cent for six months, Arab Bank's offer of 1.9 per cent for six months and Bank of Us offering 1.85 per cent for seven months.Among the big banks, the highest offer is 1.75 per cent, which NAB is offering for 10 months (an increase of 90 bps). CBA and Westpac are offering 1.7 per cent for 12 months. ANZ is offering 1.35 per cent for eight months.