Greater Bank ramps up longer term deposit rates for savers
Greater Bank has raised the interest rates on its longer term deposits by up to 50 basis points, in a move set to give eligible Aussie savers the highest TD returns in the market.
This means that the non-major now offers the best rates for customers looking to grow their cash in term deposits from two years through to five.
Savers can now access Greater’s two and four year term deposits 40 basis points higher at 3.20% and 3.40% respectively.
And despite its three year rate only increasing by 10 bp to 3.30%, Greater lifted five year TD rates 50 basis points higher to 3.50%.
According to Mozo data, the last time savers had access to a five year rate that high was in May last year when it was being offered by RaboDirect.
However, Greater Bank’s 3.50% rate doesn’t come without a catch, as customers are required to lock in $5,000 or more.
Summary of Greater’s TD rate hikes:
| Term | Rate before hike | New rate* |
|---|---|---|
| 2 years | 2.80% | 3.20% |
| 3 years 4 years 5 years | 3.20% 3.00% 3.00% | 3.30% 3.40% 3.50% |
*Rates available to customers who deposit $5,000 or more into the account.
Greater Bank’s rate hike move came as no surprise to Mozo’s Product Data Manager Peter Marshall, who predicted months ago that longer term deposit rates would gradually increase in a bid to encourage savers.
“We know that interest rates are under pressure, with the US Federal Reserve raising rates and the RBA expected to lift the cash rate later this year,” he said.
Marshall added that short term deposit rates would likely stay as they are, as longer term deposits provide more value when it comes to helping the banks meet capital requirements.
Looking for the perfect place to grow your nest egg? With no less than 76 term deposits to choose from, you’re bound to find a good match here at Mozo’s comparison hub.