UBank lifts key term deposit rate, joins Judo Bank and Rabobank in making wider cuts
Thursday 07 May 2020
A number of term deposits with rates towards the higher end of the market have been tweaked in recent days, including offers from Judo Bank, Rabobank and UBank.
Online player UBank has amended its 12-month term deposit rate (where interest is paid at maturity), providing a 20 basis points lift which increased the interest rate from 1.50% to 1.70%.
The new rate of 1.70% places the UBank offer in the ten highest rates currently available for a 12-month term in the Mozo database, and 0.31% above the current average of 1.39%.
However, UBank also cut rates on a number of shorter terms between 20 and 30 basis points including a 20 basis point cut to its 9-month rate (now 1.50%) and a 30 basis point cut to the 3-month rate (now 1.20%).
Rabobank, the former rate leader in the Mozo database across a number of terms, also reduced select term deposit rates between 25 and 55 basis points on Wednesday.
Despite the cuts, Rabobank’s rates are currently some of the most competitive in the Mozo database, with the highest being 1.75% for 1-year and 5-year terms.
Similarly, Judo Bank made a number of changes to its shorter term deposit rates this morning, trimming between 15 and 20 basis points off its six, nine and 12 month terms.
Judo Bank still remains the Mozo rate leader when it comes to longer term deposit though, with the highest rates currently in our database for two, three, four and five year terms.
To put all of these changes into perspective, here’s a snapshot of the highest term deposit rates in our database for a range of terms as of May 7:
|Term length||Institution||Interest rate|
|3 months||Qudos Bank||1.90%|
|6 months||Transport Mutual Credit Union||1.95%|
|3 years||Judo Bank||2.05%|
|5 years||Judo Bank||2.15%|
Judo, Rabobank and UBank join the likes of Macquaire, MyStateBank and NAB who have also made a series of term deposit cuts during May.
These moves have added to a trend which has seen rate reductions heavily outweigh rate increases in recent months. In fact, throughout April, there were 123 recorded term deposits cuts in the Mozo database.
Interested in stashing your savings in a term deposit? Get started by comparing some of the hot offers in the table below, or check out the latest rates from a wider range of banks by using Mozo’s handy term deposit comparison table.