Term deposit interest rates set to improve at Teachers Credit Union.

The chief executive of Teachers Credit Union has said that the group is offering very competitive rates on high-interest savings accounts and term deposits.

Steve James told the Sheet that the group’s funding costs had gone down and that as loan rates went up, it could pass on the benefits to bank customers.

Teachers Credit Union is currently offering a rate of 7.05 per cent for three years on high interest savings accounts and term deposits.

In terms of home loans, Teachers Credit Union is currently offering a standard variable rate of 6.49 per cent. Recent rate changes have encouraged bank customers to compare home loans and compare term deposits.

Queensland Police Credit Union chief executive Grant Devine told the news provider: "The big question now in this sector is how long is this price war going to continue? How long can term deposit rates stay above standard variable mortgage rates?"

NAB this week tried to lure home loan customers to its 6.49 per cent standard variable rate by highlighting its benefits over Westpac’s 6.76 rate.

This article is brought to you by Mozo – Helping you compare term deposits