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
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Mozo experts choice awards won:
- High Interest Savings - 2024
Savings Maximiser
5.50% p.a. (for $0 to $100,000)
0.55% p.a.(for $0 and over)
Yes up to $250,000
Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Maximiser
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 5.50% p.a. (for $0 to $100,000)
- standard interest rate
- 0.55% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- For customers who deposit $1000 from an external source into a personal ING account (excluding Orange One and Living Super), make 5 eligible transactions and grow their nominated Savings Maximiser account each month so there is more in the account at the end of the month than there was at the start of each month (excluding interest). The total bonus interest rate is available on balances up to $100,000 on one Savings Maximiser the next month after meeting eligibility.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must be linked to an Orange Everyday transaction account to receive the bonus rate. Where multiple Savings Maximiser Accounts are held, the bonus rate is only applied to one nominated account.
Read reviews and learn more about ING savings accounts
-
Bonus Saver
5.00% p.a. (for $0 and over)
0.50% p.a.(for $0 and over)
Yes up to $250,000
Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.
CompareCompareBonus Saver
Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.
- Maximum rate
- 5.00% p.a. (for $0 and over)
- standard interest rate
- 0.50% p.a.(for $0 and over)
- 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.
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read reviews and learn more about BCU Bank savings accounts
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Bonus Saver Account
5.00% p.a. (for $0 to $250,000)
0.05% p.a.(for $0 and over)
Yes up to $250,000
Deposit at least $20 each month and make 5 Visa Debit transactions with a linked Glide account.
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
CompareCompareBonus Saver Account
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
- Maximum rate
- 5.00% p.a. (for $0 to $250,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read reviews and learn more about MyState Bank savings accounts
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MoneyMAX Account
No Current Offer
4.70% p.a.(for $1 and over)
Yes up to $250,000
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
CompareCompareMoneyMAX Account
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
- Maximum rate
- No Current Offer
- standard interest rate
- 4.70% p.a.(for $1 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- n/a
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access for deposits only.
Read reviews and learn more about Unity Bank savings accounts
-
Smart Saver Account
4.50% p.a. (for $0 and over)
0.05% p.a.(for $0 and over)
Yes up to $250,000
Increase account balance by any amount and make no more than two withdrawals
Work towards your savings goals with this account. Earn bonus interest when you grow your balance and make no more than 2 withdrawals each month. Earn a guaranteed standard rate of interest each month on your savings. No monthly account keeping fees to pay. Use the app or internet banking to manage your account 24/7.
CompareCompareSmart Saver Account
Work towards your savings goals with this account. Earn bonus interest when you grow your balance and make no more than 2 withdrawals each month. Earn a guaranteed standard rate of interest each month on your savings. No monthly account keeping fees to pay. Use the app or internet banking to manage your account 24/7.
- Maximum rate
- 4.50% p.a. (for $0 and over)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Increase account balance by any amount (excluding interest) and make no more than two withdrawals in the month
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read reviews and learn more about Newcastle Permanent savings accounts
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^See information about the Mozo Experts Choice Savings Account Awards
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