ANZ boosts longer term deposit rates for savers
In a surprise move potentially indicating the bank is preparing for a higher cash rate climate, ANZ has lifted term deposit interest rates attached to its 1, 2 and 3 year terms.
ANZ’s most lucrative term deposit rate for customers looking to stash their cash is its 3 year rate which now sits at a high point of 2.70%.
ANZ’s decision to raise only longer TD rates have clearly bucked the trend this month, as Mozo Data shows the majority of July’s term deposit rate rises were concentrated on TDs ranging from 5 to 8 months.
For instance, several non-challenger providers including Gateway Credit Union, CUA and Summerland Credit Union increased their short term deposit rates this week. For terms under 1 year, Gateway and Summerland increased rates by 20 basis points, while CUA added 10 basis points to its 6 month rate, now at 2.60%.
Mozo’s Product Data Manager Peter Marshall believes it’s no coincidence that ANZ - one of Australia’s biggest banks - has ramped up interest rates attached to longer terms in the context of the greater picture.
“Looking at longer term deposit rates can sometimes function like a crystal ball, and what we're seeing in this instance is a big four bank’s prediction of how interest rates will play out,” he said.
“ANZ’s prepared to pay a bit more for extra funding in the long term, because the bank may well believe, like former RBA member John Edwards and even the Prime Minister, that rates will rise somewhat significantly over the next two years.”
Summary of ANZ’s TD rate rises:
Marshall said he’s interested to see where term deposit rates will go in July, especially with the Reserve Bank expected to keep rates on hold again next Tuesday.
“For now it seems like an upward trend on term deposit rates is developing which can only be a good thing those prepared to lock in their cash.”
Whether you’re in the market for a short term deposit or one with a rate that will last for a few years, shop around for the most lucrative option at Mozo’s comparison hub.