ANZ plumps up longer term deposit interest rates for savers
Always the rate chasers, here at Mozo we are constantly monitoring the term deposit market, so that we can pass on any key changes to Aussies looking to lock away their cash.
One trend we noticed near the end of 2016, was a number of providers reducing rates attached to shorter term deposits, with some banks and credit unions lifting rates on longer terms to entice committed savers.
According to our database that pattern continued in January, with big bank ANZ cutting its two year rates by 60 basis points, however boosting rates on longer terms considerably.
The major’s three and four year term deposit rates increased by up to 40 basis points, taking rates to the 2.60% and 2.70% mark respectively. As for five year term deposits, ANZ lifted rates by 30bp to 2.80%.
Another highlight was Maitland Mutual Building Society’s decision to pump up its two and three year deposit rates by 10 basis points to 3.20% and 3.30% respectively, giving it market leader status for those given terms.
Non-major providers following the term deposit rate hike trend for longer terms in 2017 included CUA, ME and Teachers Mutual Bank.
Term Deposit rates outlook for 2017
“This year, we’re going to see shorter term deposit rates erode even further. When it comes to longer term deposit rates, I expect they’ll be static,” said Mozo’s Product Data Manager, Peter Marshall.
“That’s unless of course the Reserve Bank lifts the official cash rate, which probably won’t happen until mid 2017.”
Best term deposits
1 year
- 3.00% - Teachers Mutual Bank, UniBank
2 years
- 3.20% - Maitland Mutual Building Society
3 years
- 3.30% - Maitland Mutual Building Society
4 years
- 3.10% - Arab Bank Australia, G&C Mutual Bank, QT Mutual Bank
5 years
- 3.30% - RaboDirect
* Different interest rates apply to different amounts or different interest payment frequencies.
^See information about the Mozo Experts Choice Term Deposit Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.