Term deposits certainly didn’t stand still in May with Mozo counting a whopping 500 individual interest rate cuts from 60 different banks and credit unions*.
Now that the dust has settled, it’s clear that while a number of credit unions and banks have been unseated, one in particular has risen to the top spots in the Mozo database: Qudos.
Qudos Bank rises to top of Mozo database
Despite not making any actual rate increases to term deposits last month, mutual bank Qudos rose to the top of Mozo’s database in May for its 3 to 12 month terms.
This recent development happened after Transport Mutual Credit Union ended its 6-month term deposit special offer of 1.95% p.a. and Firstmac dropped its 1-year term deposit rate from 1.95% p.a. to 1.60% p.a. on 28 May and then again to 1.30% p.a. yesterday*.
After all these changes and with an interest rate of 1.80% p.a. available on balances over $5,000, Qudos now offers the most competitive rates in the Mozo database for three, six, nine month and one year terms.
ANZ slashes interest rate for leading 8-month term
The big banks weren’t passive in the world of term deposits either with all four major institutions cutting rates by as much as 40 basis points. This included ANZ’s previously leading 8-month term deposit rate, which went unchanged in April but was cut from 1.35% p.a. to 1.15% p.a. in May.
Besides the four major banks, others that cut big across the board included Auswide Bank, Bank of Queensland, Bendigo Bank, CUA, MyState Bank, People’s Choice Credit Union, St George Group, Suncorp and UBank.
MyState Bank and Bank of Queensland in particular cut term deposit rates by as much as 95 and 75 basis points respectively.
Judo Bank holds firm with rates over 2.00%
Finally, the star of term deposits ever since it entered the market last year, Judo Bank once again held firm with the most competitive rates for 2 to 5 year terms.
Its rates, available for balances between $1,000 and $1 million are as follows:
- 2-year term: 2.00% p.a.
- 3-year term: 2.05% p.a.
- 4-year term: 2.10% p.a.
- 5-year term: 2.15% p.a.
Want to find a term deposit to stash your cash in? Head to our compare term deposits page to see what’s on offer or check out the 1-year terms below.
*Rate cut statistics taken from information available in the Mozo database, correct as of 1 June 2020.
Compare 1-year term deposits - last updated November 28, 2020
- AMP Bank
Term DepositAMP Bank
- MyState Bank
Online Term DepositMyState Bank
Online Term DepositDetails
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