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.”

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