Savers looking for a ray of sunshine to start the new year could be forgiven for shedding a tear, with the first few weeks of 2018 seeing the ongoing downward trend of many term deposit rates continue.
Australians looking for a safe place to stash their savings could be forgiven for glancing at term deposit rates with a weary eye, especially given the fact that, according to Mozo data, there have been 65 cuts from providers already this month.
Term deposit rates have been falling for months now, but recently there have been a few good value options available for savvy savers who know where to look, Mozo data shows.
ANZ has bucked the trend of falling term deposit rates by upping its 9-month Advance Notice Term Deposit rate by 50 basis points to 2.70% as a handful of banks and financial providers continue to cut rates.
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.
Only nine months ago, the average 2 year term deposit rate offered by the big banks was 3.13%, fast forward to present day and for the same term savers are facing a return of just 2.48%.
Stashing cash in a term deposit with a high interest rate is known for being a safe way to grow funds, however savers may be disappointed to hear that over the last two months a number of banks have reduced the value of their deposit accounts.
Westpac has hiked the interest rate attached to one of its short term deposits by 60 basis points, after the same special rate offer only expired around two weeks ago.
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.
According to Mozo data, term deposit rate cuts have become the norm after 22 providers reduced rates across a range of terms this month.