2017 term deposit update: ING Direct and 4 other providers cut rates
Over the last few months of 2016, Mozo reported on a range of providers reducing term deposit rates by up to 0.85%, all despite the Reserve Bank keeping the cash rate on hold.
Now, in the first few weeks of the New Year, some TD rates with terms of one year and under have fallen further. According to Mozo data, five providers have reduced rates on shorter terms including challenger banks ING Direct, Newcastle Permanent and Firstmac.
“Providers kicked off 2017 the way they finished 2016 by squeezing rates on home loans and term deposits,” said Mozo’s Product Data Manager, Peter Marshall.
He added that unless the RBA boosts the official cash rate by 0.50% or more this year, he expects term deposit rate cuts to continue throughout 2017.
The Reserve Bank is set to meet for its first board meeting of the year on February 7. Mozo will be reporting on its decision via our dedicated RBA page.
January term deposit rate cuts
- Firstmac - Sliced 5bp off 1 month TDs to 1.95% and 3 months by 5 basis points to 2.75%. Cuts of 10bp were applied to 2 and 6 month term deposits, which now sit at 2.00% and 2.75% respectively.
- Goldfields Money - Slashed TD rates by 5bp and 10bp across terms from 1 to 6 months. Rates within these terms range from 1.95% to 2.75%.
- ING Direct - Reduced 11 month term deposits by 40 basis points to 2.00%. One year rates fell 20bp to 2.80%. ING also cut its 3 and 6 month term deposit rates by 10 basis points to 2.00% and 7 month term deposits by 10 bp to 2.70%.
- Newcastle Permanent - Brought its 4 month TD rate down 50bp to 2.00%.
- Police Credit Union - Reduced 2, 6 and 9 month term deposit rates by 10 basis points to 1.80%, 2.25% and 2.10% respectively. The credit union’s 3 month rates fell by 20bp to 2.10%.
Despite the flurry of rate cuts making some term deposits under one year less competitive, savers still have access to TDs in that term range up to the 2.9% mark. Here are the top rates you can nab now:
Best TD rates
Under 1 year
- 2.90% - ME for 11 months
- 3.20% - ANZ