Mozo Live: ANZ cuts term deposit rates, young investors need less than expected to get started

Today’s blog is now closed. You can stay up-to-date with the latest banking news and interest rate updates over on our latest live blog.

With election season heating up and both sides vying for the support of potential first home buyers, let’s revisit the Coalition’s proposal to let you use some of your super to plonk down toward your deposit.

Therefore if you missed it, make sure to check out this exclusive interview with expert mortgage broker Brett Sutton who explained the proposal and commented on a study that described some interesting downstream effects the Coalition may not have anticipated. 

And the Coalition isn’t the only one wooing first home buyers. You can also read about the vastly different proposal the Liberals have up their sleeve. 

Finally, if you can’t wait for either policy to help you scrape together your deposit, there are still some low deposit home loans out there that can help you get your foot in the door sooner. Compare some solid options right here on Mozo.

And with that, we're logging off for today. See you again here tomorrow! 

Think you need significant savings before you're ready and able to invest? You’re not alone. But you might be overthinking it.

HSBC’s latest Investor Insights Survey found Gen Z and Millennials believe they need upwards of $20K to get started. But in reality, thanks to micro-investing apps and low-fee trading platforms, you can start building your portfolio with as little as $5 to $100.

With over half of investors now using dollar-cost averaging (investing small amounts regularly) it’s clear that consistent investing beats waiting for the “right” moment. So, don’t let big numbers hold you back.

Good morning and welcome to the live blog for April 15!

ANZ has reduced term deposit rates across multiple terms, with cuts affecting nearly all short to medium term deposits (4 months – 2 years).

The largest reduction of 25 basis points was applied to 8 month terms, bringing them down from a relatively high 4.50% interest to 4.25%.

Most other terms saw a 10 basis point reduction like the 6 month and 12 month options, which now offer 3.30% and 3.90%, respectively.

How the Big Four banks' term deposit rates compare

ANZ’s changes have altered its position relative to the other Big Four. At the time of writing, term deposits among Australia’s biggest banks are:

Despite the cuts, the Big Four are all still fairly close to each other on shorter terms, while NAB now leads across most of the deposit periods.

What this means for term deposits

The rate reductions come as there’s speculation about potential RBA cash rate cuts in the coming months. Economists note that these moves often precede broader market shifts in the interest rate direction.

Short-term deposits (under 3 months) remained unchanged in ANZ's cuts, suggesting that the bank is still looking to attract ultra-short length savers. We’ll have to wait and see how the other major term deposit providers respond, but it is likely to be similar. 

Looking to grow your savings? Start by checking out some of the best term deposits available on Mozo's database right now.