Term deposit rates take a tumble

While banks are continuing to pledge their commitment to interest rate cuts with new low-interest home loans, they are also slashing their term deposit rates too.

The Herald Sun reports that NAB has taken particularly drastic measures to reduce the amount it pays out on its three-month fixed term deposits, cutting rates from 4.2 per cent to 2.1 per cent.

Commonwealth Bank has also been lowering its term deposit rates ahead of next month’s meeting of the Reserve Bank of Australia (RBA).

Experts are currently split on whether the RBA will push ahead with more interest rate cuts.

At its meeting at the beginning of this month, the Bank decided to keep rates unchanged for the first time since September.

Previous interest rate cuts have brought along a raft of new low-interest home loans and enticed thousands of first-home buyers to enter the market.

This article is brought to you by Mozo – helping you compare term depositsADNFCR-1761-ID-19101056-ADNFCR