Term deposits continued their descent last month, with the number of cuts rivalling the amount we saw back in March. All told, 64 out of the 82 providers we track cut at least one term during the month, leaving the average 12 month term deposit rate sitting at just 1.11% p.a. - a 14 bp drop from the previous month.
All four of the major banks revised their rate sheets in June, with ANZ and NAB reducing rates by 10 to 15 bp, Commonwealth Bank by 5 to 25 bp, and Westpac 5 to 15 bp. Currently, only NAB and Westpac offer rates of at least 1.00% p.a. among the big banks.
However, it was reductions from market leader Judo Bank that will come as the biggest gut punch to serious savers. After trimming its term deposit rates by 15 to 40 bp last month, Judo Bank now offers rates of between 1.35% p.a. and 1.95% p.a. on 1 year to 5 year investment options.
^See information about the Mozo Experts Choice Term Deposits Awards
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