Term deposit cuts accelerate following RBA rate cut
While savings accounts mostly held strong in the lead up to the RBA rate cut, term deposits rates have been tumbling for months now. In April, we recorded a total of 35 institutions reducing term deposit rates. That number jumped up to 51 in May.
Now that the Reserve Bank has finally cut official interest rates, those cuts have only accelerated. Since last Tuesday, Mozo’s data has recorded reductions to 42 term deposits from 41 providers.
“Most banks had been cutting term deposit rates in the months leading up to the RBA cash rate cut, so I had expected that when the cut came there would be little further adjustments made to rates for term deposits,” said Mozo’s banking expert Peter Marshall.
“That hasn't been the case however, and instead the flood of cuts has continued. And with one or maybe even two more cuts by the RBA now expected before the end of this year, even the fairly low rates available now may be worth considering.”
Below is a snapshot of some of the biggest reductions providers have made in the wake of the RBA rate cut.
Term deposit rate cuts
| Provider | Biggest cut | Term | New rate |
|---|---|---|---|
| AMP | -0.05% | 7 month | 2.30% p.a. |
| Arab Bank Australia | -0.60% | 5 year | 2.30% p.a. |
| BankVic | -0.70% | 5 year | 2.10% p.a. |
| Bank of Queensland | -0.50% | 4 month Premier Investment | 1.75% p.a. |
| Bank of Sydney | -0.50% | 1 year | 1.80% p.a. |
| Bank of Us | -0.40% | 2 year | 1.90% p.a. |
| bcu | -0.35% | 3 year | 2.25% p.a. |
| Bendigo Bank | -0.35% | 7 month | 1.90% p.a. |
| BOQ Specialist | -0.25% | 2 year | 1.75% p.a. |
| The Capricornian | -0.25% | 1 Year | 2.20% p.a. |
| Coastline Credit Union | -0.40% | 3 month | 1.90% p.a. |
| Commonwealth Bank | -0.25% | 1 month | 1.25% p.a. |
| Defence Bank | -0.25% | 6 month | 2.00% p.a. |
| Endeavour Mutual Bank | -0.10% | 2 year | 2.10% p.a. |
| Firefighters Mutual Bank | -0.20% | 1 year | 2.50% p.a. |
| Gateway Bank | -0.10% | 1 year | 2.40% p.a. |
| GMCU | -0.40% | 2 year | 2.20% p.a. |
| Health Professionals Bank | -0.20% | 1 year | 2.50% p.a. |
| Heritage Bank | -0.30% | 4 year | 2.00% p.a. |
| Hunter United | -0.45% | 3 month | 1.75% p.a. |
| ING | -0.25% | 7 month | 1.50% p.a. |
| Macquarie | -0.15% | 9 month | 1.85% p.a. |
| Macquarie Credit Union | -0.25% | 3 month | 1.90% p.a. |
| ME | -0.30% | 2 month | 2.00% p.a. |
| MOVE Bank | -0.45% | 2 year | 2.15% p.a. |
| The Mutual Bank | -0.30% | 9 month | 2.00% p.a. |
| NAB | -0.25% | 7 month | 1.65% p.a. |
| Newcastle Permanent | -0.30% | 9 month | 2.00% p.a. |
| P&N Bank | -0.30% | 7 month | 2.00% p.a. |
| PCCU | -0.25% | 6 month | 2.25% p.a. |
| QBank | -0.25% | 3 year | 2.50% p.a. |
| Qudos Bank | -0.50% | 3 year | 2.50% p.a. |
| Rabobank | -0.20% | 6 month | 2.40% p.a. |
| RACQ Bank | -0.30% | 3 year | 2.10% p.a. |
| Rural Bank | -0.30% | 1 year | 2.10% p.a. |
| Rural Bank ONE | -0.20% | 6 month | 2.25% p.a. |
| Suncorp | -0.20% | 7 month flexiRate | 1.80% p.a. |
| Teachers Mutual Bank | -0.20% | 1 year | 2.50% p.a. |
| UBank | -0.20% | 5 month Green Term Deposit | 2.20% p.a. |
| UBank | -0.20% | 6 month | 2.25% p.a. |
| UniBank | -0.20% | 1 year | 2.50% p.a. |
| Unity Bank | -0.30% | 9 month | 1.80% p.a. |
If the length of that list has you feeling skittish, you might be somewhat relieved to learn that cuts to savings accounts have been far less numerous than cuts to term deposits. So if you’re looking for a place to stash your savings, check out some of the options below.
Savings account comparisons on Mozo - last updated 20 April 2024
-
Mozo experts choice awards won:
- Kick Start Savings - 2024
High Interest Savings Account
5.75% p.a. (for $0 to $250,001)
4.40% p.a.(for $0 to $250,001)
Yes up to $250,000
Bonus rate for the first 4 months from account opening
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
CompareCompareHigh Interest Savings Account
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Rabobank High Interest Savings Account
-
Mozo experts choice awards won:
- High Interest Savings - 2024
Reward Saver
5.25% p.a. (for $0 to $100,000)
0.30% p.a.(for $0 and over)
Yes up to $250,000
Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.
CompareCompareReward Saver
Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.
- Maximum rate
- 5.25% p.a. (for $0 to $100,000)
- standard interest rate
- 0.30% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Grow your balance (in addition to interest paid by Bendigo Bank) each month and must have linked Bendigo Everyday or Student Account to be eligible.
- Access
- BPay, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access available for deposits only.
Read our Mozo Review to learn more about the Bendigo Bank Reward Saver
-
Savings Account
5.35% p.a. (for $0 to $250,000)
4.75% p.a.(for $0 to $1,000,000)
Yes up to $250,000
Bonus variable rate is available for the first four months.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first four months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
-
High Interest Save Account
5.10% p.a. (for $0 to $250,000)
0.10% p.a.(for $0 and over)
Yes up to $250,000
Deposit at least $200 to either Spend, Bills or Save account from an external source each month.
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
CompareCompareHigh Interest Save Account
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
- Maximum rate
- 5.10% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Deposit at least $200 to either Spend, Bills or Save account from an external source each month.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Account can only be opened through iOS or Android app, but may be accessed through internet banking.
Read our Mozo Review to learn more about the ubank High Interest Save Account
-
Reward Saver Account
5.25% p.a. (for $0 to $1,000,000)
0% p.a.(for $0 and over)
Yes up to $250,000
Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
CompareCompareReward Saver Account
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
- Maximum rate
- 5.25% p.a. (for $0 to $1,000,000)
- standard interest rate
- 0% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the IMB Bank Reward Saver Account
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^See information about the Mozo Experts Choice Savings Account Awards
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