Term deposit cuts accelerate following RBA rate cut
![](http://cdn.mozo.com.au/redactor/pictures/8379/term-deposit-cuts-accelerate_original.jpg)
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
-
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
For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account 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 our Mozo Review to learn more about the ING Savings Maximiser
-
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
-
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 4 months.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2024 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 2024 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 4 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
-
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. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.
CompareCompareHigh Interest Savings Account
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.
- 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
-
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
Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.
Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.
CompareCompareBonus Saver Account
Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.
- 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
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the MyState Bank Bonus Saver Account
Your selected term deposits
Your selected term deposits
Your selected term deposits
Your selected term deposits
Your selected term deposits
^See information about the Mozo Experts Choice Savings Account Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.