Term deposits continued their descent last month, though the cuts were not as steep as in previous months. All told, 58 out of the 86 providers we track cut rates for at least one term in August, leaving the average 12 month rate sitting at just 0.91% p.a.
All major banks save for ANZ revised their rate sheets in August. NAB cut between 5 and 15 bp on 1, 2 and 3 month terms, and Commonwealth Bank trimmed 5 bp of its 10 month offering, leaving it at 0.85% p.a. Meanwhile, Westpac shifted its special offering from 7 months to 8 months, reducing it 5 bp to 0.75% in the process.
For those looking to lock away their savings for more than a year, providers like Judo Bank are well worth a look. Judo currently offers rates of between 1.38% p.a. and 1.55% p.a. on 1 year to 5 year investment options. For shorter terms, Bankvic also offers decent value, with rates as high as 1.35% p.a. available on 9 month terms.
^See information about the Mozo Experts Choice Term deposits Awards
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