Term deposits down in same month RBA cut cash rate
Reserve Bank of Australia figures have revealed the value of term deposits held with banks fell 1.1% in May to A$515 billion, compared with the previous month.
The drop in term deposit balances came in the same month the RBA Board cut the official cash rate to 2%. The figures also showed a sizeable drop of 3.6% in the value of term deposits since the start of the year.
Several banks such as the Commonwealth Bank and NAB that held back part of the cash rate in May, cutting mortgage rates by less than 25 basis points to maintain deposit rates, actually grew their deposits in the month.
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This comes as the latest banking statistics from the Australian Prudential Regulation Authority (APRA) showed several banks including AMP, Arab Bank, BOQ, Suncorp and Citibank have experienced deposit outflows in recent months.
APRA found that deposit balances grew by just 0.1% in May compared with the previous month, while housing finance balances increased by 0.5%.
With lending growth exceeding growth in deposit flows, which hasn’t occurred since the financial crisis, banks may have to source more funding from the wholesale market or sacrifice some margin and compete more for deposits.
See the latest APRA banking statistics here.
Term deposit comparisons on Mozo - rates updated daily
Personal Term Deposit
interest rate
Minimum deposit
Govt Deposit Guarantee
1.20% p.a.
2 years$5,000Yes up to $250,000Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity.
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Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity.
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Online Term Deposit
interest rate
Minimum deposit
Govt Deposit Guarantee
1.20% p.a.
2 years$5,000Yes up to $250,000No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government
Online Term Deposit
No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government
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Term Deposit Special
interest rate
Minimum deposit
Govt Deposit Guarantee
1.10% p.a.
8 months$250,000Yes up to $250,0008 Month Term Deposit special. Minimum $250,000 deposits with no setup or monthly fees. Awarded Australia’s Best Credit Union in the 2021 Mozo Experts Choice Awards for Australia’s Best Banking.
Term Deposit Special
8 Month Term Deposit special. Minimum $250,000 deposits with no setup or monthly fees. Awarded Australia’s Best Credit Union in the 2021 Mozo Experts Choice Awards for Australia’s Best Banking.
- Minimum deposit
- $250,000
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- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Personal Term Deposit
interest rate
Minimum deposit
Govt Deposit Guarantee
1.10% p.a.
1 year$5,000Yes up to $250,000Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity.
Personal Term Deposit
Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity.
- Minimum deposit
- $5,000
- Maximum deposit
- $500,000
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the MyLife MyFinance Personal Term Deposit
- Featured Product
Online Term Deposit
interest rate
Minimum deposit
Govt Deposit Guarantee
0.80% p.a.
1 year$5,000Yes up to $250,000No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government
Online Term Deposit
No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government
- Minimum deposit
- $5,000
- Maximum deposit
- $5,000,000
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the MyState Bank Online Term Deposit
* Different interest rates apply to different amounts or different interest payment frequencies.
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