Despite the RBA’s decision to hold off on cash rate cuts for this month, banks are still slashing term deposit rates left, right and centre, spelling bad news for long term savers.
Today big bank ANZ announced cuts of between 10 and 30 basis points to a range of its term deposit rates. All term deposit rates of 7 months or more have dropped, and a significant 25 basis points were slashed from ANZ’s 5-year term deposit rate, dragging it down to a super low 2.20%.
But it’s not alone. Our Mozo data experts conducted an analysis which found that 53 banking providers in total have already cut term deposit rates this month, including other big banks Commonwealth Bank and NAB.
UPDATE 4/6/19: Big Bank Westpac has slashed between 0.25 and 0.50 basis points off its term deposit rates. The rate for a 1-year term deposit now sits at 1.95% p.a.
Mozo director Kirsty Lamont said, “Term deposit rates have been falling since the start of 2019, so there seems to be little justification for the latest round of cuts this month, which the banks have pushed through despite the official cash rate remaining on hold.”
With the current average 1-year term deposit rate at just 2.40%, significantly lower than last year’s 2.53% average, our Mozo Experts revealed over 50 term deposit providers have cut rates since the start of 2019.
This steady decline in term deposit rates means savers need to be vigilant when it comes to deciding where to stash their hard-earned cash away, in order to get the best return possible.
“If you’re currently in the market for a term deposit or you have an existing term deposit that is nearing the end of its term, it’s vital to compare your options to ensure you lock in the best possible rate. By shopping around you can still lock in up to 2.70% for a 1-year term or up to 3.00% for terms of 3 or more years,” Lamont said.
Where to find today’s hot term deposit rates
With experts predicting an RBA rate cut could be just around the corner, banks may be getting in early and pricing a future Reserve Bank rate change into their term deposit rates now. Which means, now may be the time to hunt down a good rate before it’s too late. Here’s where you’ll find some of the top term deposit rates:
- 3-month term 2.55% p.a. - Firstmac, Goldfields Money
- 6-month term 2.75% p.a. - Firstmac, Goldfields Money
- 9-month term 2.70% p.a. - Arab Bank Australia, Qudos Bank
- 1-year term 2.70% p.a. - Arab Bank Australia, Bank Australia, Firefighters Mutual bank, G&C Mutual Bank, Health Professionals Bank, Qudos Bank, Teachers Mutual Bank, UniBank
- 2-year term 2.85% p.a. - G&C Mutual Bank, Qudos Bank
- 3-year term 3.00% p.a. - Qudos Bank
- 4-year term 2.90% p.a. - Credit Union SA, G&C Mutual Bank
- 5-year term 3.00% p.a. - G&C Mutual Bank, IMB Bank
If your bank is cutting term deposit rates then it might be time to look elsewhere for a place to stash your cash. Check out our term deposit comparison table and lock in a hot rate while you still can.