Which big bank is cutting term deposit rate
Just two months after boasting about raising interest rates for savers, the big banks have begun quietly cutting the returns they pay to term deposit account holders. Yep, that’s right. Back in May they said they were looking after savers by not passing on the whole RBA rate cut to their mortgage borrowers. They bumped up some of their popular term deposit rates and told us they were balancing the needs of borrowers, savers and shareholders. Well that time has now passed, apparently and big bank term deposit rates have begun to fall again. The good news for savers is that other banks and credit unions have some great term deposit rates on offer at the moment.
Which big bank is cutting term deposit rates?
Australia’s biggest bank, the Commonwealth Bank, has slashed the popular 12 month term deposit rate down to 2.4 per cent. The Commonwealth Bank has also cut two-year and three-year term deposit rates down to 2.45 per cent. You can check out all the latest Commonwealth Bank term deposit rates here.
Commonwealth Bank senior executive, Clive van Horen, told Fairfax Media that CBA still offered “competitive” interest rates for savers. Other big banks are expected to follow the Commonwealth Bank’s move and also cut their term deposit rates.
The good news is that smaller banks and credit unions generally have better term deposit rates anyway, and most have not been cutting their rates for savers in recent weeks.
What are the best term deposit rates now available in Australia?
The most popular term deposit rates are those with terms of 12 months and under. The highest 12 month term deposit rate now in the market is 3.05 per cent per annum from MOVE. There are 14 other banks and credit unions offering one year term deposit rates of 3.0 per cent, including ANZ Bank, the Bank of Melbourne and People’s Choice Credit Union.
The best three month term deposit rate in Australia right now is 3.0 per cent from MOVE. Other good three month term deposit rates are from Arab Bank Australia (2.80 per cent) and UBank (2.71 per cent).
Compare term deposit rates from all of Australia’s big banks, smaller banks and credit unions here.