Term deposit interest rates: February 2021
Term deposits continued their descent last month, with 36 out of the 86 providers we track cutting rates for at least one term. In total, we recorded 382 cuts in January, bringing the average 12 month rate down to just 0.58% p.a. - a difference of 4 bp from the previous month.
Among the major banks, all except for NAB revised their rate sheets. ANZ trimmed between 5 and 20 bp off select terms, Commonwealth Bank cut between 5 and 10 bp on all terms 6 months or longer, and Westpac also reduced rates for all offerings by between 5 and 15 bp.
The cavalcade of cuts has left only a handful of worthwhile offers for those looking to lock away their savings. Market leader Judo Bank currently offers rates of between 0.98% p.a. and 1.20% p.a. on 1 year to 5 year terms. For shorter terms, Bankvic offers rates as high as 0.85% p.a. on 3 to 11 month investment options.
To find out how interest rates are tracking in other banking products for February, check out our snapshot for Home Loan Interest Rates, Personal Loan Interest Rates, Car Loan Interest Rates and Savings Account Interest Rates.