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 November 28, 2020
- MyState BankMyState Bank
Bonus Saver Account
- Bank of QueenslandBank of Queensland
Fast Track Saver Account
^See information about the Mozo Experts Choice Savings Accounts 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.