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 - last updated 3 December 2023
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Featured Product
Mozo experts choice awards won:
- Term Deposit - 2023
- SMSF Term Deposit - 2023
Term Deposit
5.35% p.a.
1 year$1,000
Yes up to $250,000
Great rates and incentives incl. 0.10% added loyalty bonus at renewal. Option to have interest paid to another bank. Winner of the Mozo Experts Choice Awards 2023^ for Term Deposits.
CompareCompareTerm Deposit
Great rates and incentives incl. 0.10% added loyalty bonus at renewal. Option to have interest paid to another bank. Winner of the Mozo Experts Choice Awards 2023^ for Term Deposits.
- interest rate
- 5.35% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $1,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Judo Bank Term Deposit
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Online Term Deposit
5.00% p.a.
9 months$1,000
Yes up to $250,000
Enjoy the certainty of a fixed interest rate combined with the convenience of online banking to set up and manage your term deposit at maturity. You can start investing from as little as $1,000 or up to $5,000,000.
CompareCompareOnline Term Deposit
Enjoy the certainty of a fixed interest rate combined with the convenience of online banking to set up and manage your term deposit at maturity. You can start investing from as little as $1,000 or up to $5,000,000.
- interest rate
- 4.90% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $5,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Bankwest Online Term Deposit
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Term Deposit
4.25% p.a.
1 year$5,000
Yes up to $250,000
CompareCompareTerm Deposit
- interest rate
- 4.25% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $1,999,999.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Commonwealth Bank Term Deposit
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Standard Term Deposit
5.00% p.a.
1 year$25,000
Yes up to $250,000
Competitive interest rates. No set up fees to pay. Interest can be paid into another bank account. Insured by the Australian Government Financial Claims Scheme – up to a total of $250,000 per member.
CompareCompareStandard Term Deposit
Competitive interest rates. No set up fees to pay. Interest can be paid into another bank account. Insured by the Australian Government Financial Claims Scheme – up to a total of $250,000 per member.
- interest rate
- 5.00% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- -
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the First Option Bank Standard Term Deposit
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Term Deposit
4.25% p.a.
1 year$5,000
Yes up to $250,000
No set up, monthly service or management fees & choose to invest from $5,000 or more
CompareCompareTerm Deposit
No set up, monthly service or management fees & choose to invest from $5,000 or more
- interest rate
- 4.25% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Westpac Term Deposit
* Different interest rates apply to different amounts or different interest payment frequencies.
^See information about the Mozo Experts Choice Term Deposit Awards
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