Westpac brings back its special 2.60% short term deposit offer
Westpac has hiked the interest rate attached to one of its short term deposits by 60 basis points, after the same special rate offer only expired around two weeks ago.
The major bank’s backflip has meant that savers can now access a healthy 2.60% rate if they lock their cash in for ten months, at least until April 7 when it will likely revert to the previous rate.
There are strings attached however, as customers must deposit at least $5,000 ($5,000,000 is the maximum) and not have an existing term deposit (TD) account with Westpac.
This comes as Mozo has seen several providers lift term deposit rates in March, such as Greater Bank whose two year to five year TD rates are now the best on offer.
Other rate hike highlights in the world of term deposits this month included ING Direct and BankSA, where they boosted a range of short TD rates by up to 70 basis points.
After months of a stormy interest rate market, Mozo Product Data Manager Peter Marshall says it seems as though we are moving into a more rewarding period for savers.
“My feeling is that we’re seeing the first green shoots of term deposit rates recovering from the lows that dominated over the last few months.”
The good news is that all it takes to nab a short term rate up to the 3% mark is some shopping around. Here’s a snapshot of the best term deposit rates available now:
| Term | Interest rate | Provider |
|---|---|---|
| 4 months | 2.75% | Goldfields Money |
| 6 months 10 months 1 year | 2.80% 2.70% 3.00% | Teachers Mutual Bank, UniBank BankSA, ME Teachers Mutual Bank, UniBank |
While locking your cash away in a term deposit can be a great savings strategy, Marshall encouraged Aussies to be mindful of their potential downfalls.
For instance, once a term has matured, often term deposits roll over to a much lower interest rate.
“My advice would be to set a reminder for when your term deposit matures and know where you want your savings to grow next - whether it’s in the same account or another offering a more competitive rate,” Marshall said.
And with no less than 76 TDs to browse through here at Mozo, it couldn’t be easier to settle on the right term deposit account for you.
* Different interest rates apply to different amounts or different interest payment frequencies.
^See information about the Mozo Experts Choice Term Deposit Awards
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