Six banks cut term deposit rates
Among the major institutions to cut the return given to savers was the ANZ, which reduced its five-year term deposit rates to 5.8 per cent, down from 6.2 per cent.
The National Bank of Australia also dropped the interest rates on its three-year deal, taking it down to six per cent.
Recent volatility in the world's financial markets may have prompted the decision as many investors look to put their cash in safer options such as term deposits rather than investing in shares and stock.
The popularity of term deposits was recently highlighted by Westpac's financial report for the third quarter of the year, which revealed a slowing in profit growth but strong interest in these investment options.
However, earlier this week Westpac joined the list of banks reducing term deposit interest rates, dropping them by 0.2 per cent on its one-year account.
Have a question about term deposits? Ask the money gurus at Mozo Answers.