Term deposit cuts accelerate following RBA rate cut

By Niko Iliakis · · 2 min read
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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

ProviderBiggest cutTermNew rate
AMP-0.05%7 month2.30% p.a.
Arab Bank Australia-0.60%5 year2.30% p.a.
BankVic-0.70%5 year2.10% p.a.
Bank of Queensland-0.50%4 month Premier Investment1.75% p.a.
Bank of Sydney-0.50%1 year1.80% p.a.
Bank of Us-0.40%2 year1.90% p.a.
bcu-0.35%3 year2.25% p.a.
Bendigo Bank-0.35%7 month1.90% p.a.
BOQ Specialist-0.25%2 year1.75% p.a.
The Capricornian-0.25%1 Year2.20% p.a.
Coastline Credit Union-0.40%3 month1.90% p.a.
Commonwealth Bank-0.25%1 month1.25% p.a.
Defence Bank-0.25%6 month2.00% p.a.
Endeavour Mutual Bank-0.10%2 year2.10% p.a.
Firefighters Mutual Bank-0.20%1 year2.50% p.a.
Gateway Bank-0.10%1 year2.40% p.a.
GMCU-0.40%2 year2.20% p.a.
Health Professionals Bank-0.20%1 year2.50% p.a.
Heritage Bank-0.30%4 year2.00% p.a.
Hunter United-0.45%3 month1.75% p.a.
ING-0.25%7 month1.50% p.a.
Macquarie-0.15%9 month1.85% p.a.
Macquarie Credit Union-0.25%3 month1.90% p.a.
ME-0.30%2 month2.00% p.a.
MOVE Bank-0.45%2 year2.15% p.a.
The Mutual Bank-0.30%9 month2.00% p.a.
NAB-0.25%7 month1.65% p.a.
Newcastle Permanent-0.30%9 month2.00% p.a.
P&N Bank-0.30%7 month2.00% p.a.
PCCU-0.25%6 month2.25% p.a.
QBank-0.25%3 year2.50% p.a.
Qudos Bank-0.50%3 year2.50% p.a.
Rabobank-0.20%6 month2.40% p.a.
RACQ Bank-0.30%3 year2.10% p.a.
Rural Bank-0.30%1 year2.10% p.a.
Rural Bank ONE-0.20%6 month2.25% p.a.
Suncorp-0.20%7 month flexiRate1.80% p.a.
Teachers Mutual Bank-0.20%1 year2.50% p.a.
UBank-0.20%5 month Green Term Deposit2.20% p.a.
UBank-0.20%6 month2.25% p.a.
UniBank-0.20%1 year2.50% p.a.
Unity Bank-0.30%9 month1.80% 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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Last updated 30 October 2024 Important disclosures
  • Savings Account

    5.50% p.a. (for $0 to $250,000)

    5.00% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first 4 months.

    Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.

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    5.35% p.a. (for $0 to $250,001)

    1.45% p.a.(for $0 and over)

    Yes up to $250,000

    Increase balance by $200 by the end of each month

    Reward yourself with a higher rate for your good savings habits. Rabobanks’s PremiumSaver is simple - receive the maximum rate when you grow your balance by at least $200 each month (T&Cs apply). Plus, your savings help our Aussie farmers produce the food we love to enjoy.

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  • 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.^

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  • Bonus Saver

    5.00% p.a. (for $0 and over)

    1.00% 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.

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  • Savings Accelerator

    3.55% p.a. (for $0 to $50,000)

    2.85% p.a.(for $0 to $50,000)

    Yes up to $250,000

    New customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.

    Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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^See information about the Mozo Experts Choice Savings Account Awards

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Today's term deposit rates