CBA, NAB, ANZ & Westpac Term deposit rates are up!

Following The Reserve Bank’s decision to cut the official cash rate to a historic low of just 1.50%, the ‘Big 4’ surprised many by increasing selected term deposit interest rates. But what have other banks done?

The Big 4 banks caught some criticism following the RBA August official cash rate decision for not passing on the full rate reduction to mortgage holders. The amount of the 25 basis point cut that the Big 4 have passed on to their standard variable home loan customers is as follows:

  • Commonwealth Bank – 13 basis points
  • National Australia Bank – 10 basis points
  • ANZ – 12 basis points
  • Westpac – 14 basis points

On the flip side, though, all of the Big 4 announced increases in selected term deposit interest rates, as follows:

Financial Institution Term Deposit Product New Interest Rate Date Effective
Commonwealth Bank 1 year Term Deposit 3.00%pa August 19 2016
Commonwealth Bank 2 year Term Deposit 3.10%pa August 19 2016
Commonwealth Bank 3 year Term Deposit 3.20%pa August 19 2016
NAB 8 month Term Deposit 2.90%pa August 8 2016
ANZ 1 year Advanced Notice Term Deposit 3.00%pa August 5 2016
ANZ 2 year Term Deposit 3.20%pa August 5 2016
Westpac 1 year Term Deposit 3.00%pa August 8 2016
Westpac 2 year Term Deposit 3.10%pa August 8 2016
Westpac 3 year Term Deposit 3.20%pa August 8 2016

Source: Bank media announcements. Please note that conditions may apply. Please check details with the relevant financial institution.

Compare Term Deposit Rates

Based on the term deposits currently listed on CANSTAR’s term deposit comparison database, the rates announced by the Big 4 are, or are close to, market leading. That said we would expect further term deposit announcements by smaller institutions over the coming weeks.

Why are the big banks increasing term deposit rates?

Essentially it comes down to funding. CANSTAR market analysis shows that larger financial institutions source approximately 16% on average of the funds available to lend out from term deposits. Providing attractive term deposit rates encourages a higher flow of funds that can then be loaned out.

In not passing on the full 25 basis points to mortgage holders, banks are protecting margins on their existing loans and utilising some of this retained margin to offer a more attractive term deposit rate – hence attracting new deposits.

Rate changes so far this month

This term deposit action by the big banks puts the pressure right on the smaller players. As we move down the competitive tiers (banks, building societies and credit unions), reliance on term deposits for funding becomes much more significant.  They will surely need to compete.

Ultimately, this is great news for depositors (and retirees in particular) as they are, for the first time in years, seeing some relief.

Keep an eye on 2 and 3-year term deposit rates over the next few weeks! Compare term deposits now.

As at Tuesday the 23rd of August, these are the term deposit rate changes on the CANSTAR database so far this month (all rates based on $25,000 deposit):

ANZ -0.25%:

·         30d TD – now 1.5%pa

·         60d TD – now 1.5%pa

·         90d TD – now 2.%pa

·         180d TD – now 2.05%pa

·         270d TD – now 1.5%pa

-0.58%:

·         1 year TD – now 2.38%pa

-0.77%:

·         2 year TD – now 2.43%pa

-0.24%:

·         5 year TD – now 2.48%pa

Auswide Bank -0.1%:

·         60d TD – now 1.6%pa

+0.1%:

·         90d TD – now 2.6%pa

+0.05%:

·         180d TD – now 2.65%pa

+0.65%

·         270d TD – now 2.9%pa

+0.35%

·         3 year TD – now 3%pa

·         4 year TD – now 3%pa

Bank of Sydney -0.25%:

  • 30d TD – now 1.9%pa
  • 60d TD – now 1.9%pa
  • 90d TD – now 2.1%pa
  • 180d TD – now 2.2%pa
  • 270d TD – now 2.55%pa
  • 1 year TD – now 2.4%pa
Bank of Us +0.2%:

·         1 year TD – now 2.85%pa

Bank of Melbourne -0.55%:

·         30d TD – now 2.45%pa

-0.4%:

·         2 year TD – now 2.7%pa

-0.45%:

·         3 year TD – now 2.75%pa

BankSA +0.55%:

·         1 year TD – now 3%pa

+0.4%:

·         2 year TD – now 3.1%pa

+0.45%:

·         3 year TD – now 3.2%pa

BankVic -0.1%:

  • 5 year TD – now 2.95%pa

+0.1%:

·         1 year TD – now 2.55%pa

+0.15%:

·         4 year TD – now 2.95%pa

+0.2%:

·         3 year TD – now 2.95%pa

+0.3%:

·         2 year TD – now 2.95%pa

+0.25%:

·         180d TD – now 2.4%pa

Bankwest +0.1%:

·         90d TD – now 3%pa

-0.2%:

·         180d TD – now 2.7%pa

+0.11%:

·         1 year TD – now 2.96%pa

Bendigo Bank -0.1%:

·         90d TD – now 2.3%pa

·         180d TD – now 2.45%pa

·         270d TD – now 2.45%pa

-0.25%:

·         30d TD – now 1.25%pa

-0.4%:

·         60d TD – now 1.9%pa

+0.05%

·         1 year TD – now 2.65%pa

Beyond Bank +0.1%:

·         1 year TD – now 2.7%pa

·         4 year TD – now 3%pa

·         5 year TD – now 3%pa

-0.1%:

·         180d TD – now 2.5%

+0.2%:

·         2 year TD – now 2.8%pa

+0.15%:

·         3 year TD – now 2.9%pa

Big Sky Building Society +0.25%:

·         60d TD – now 2.4%pa

-0.25%:

·         90d TD – now 2.15%pa

·         270d TD – now 2.25%pa

+0.2%:

·         180d TD – now 2.7%pa

·         3 year TD – now 3.18%pa

-0.04%:

·         1 year TD – now 2.98%pa

-0.35%:

·         2 year TD – now 2.75%pa

+0.27%:

·         4 year TD – now 3.25%pa

-0.23%:

·         5 year TD – now 2.75%pa

BOQ -0.25%:

·         30d TD – now 1.75%pa

·         60d TD – now 1.75%pa

-0.15%:

·         90d TD – now 2.6%pa

·         180d TD – now 2.7%pa

·         270d TD – now 2.5%pa

+0.3%:

·         1 year TD – now 3.05%pa

+0.55%:

·         2 year TD – now 3.15%pa

+0.6%:

·         3 year TD – now 3.25%pa

Citi -0.1%:

·         90d TD – now 2.9%pa

-0.09%:

·         180d TD – now 0.68%pa

+0.05%:

·         270d TD – now 2.4%pa

Coastline Credit Union +0.15%:

·         2 year TD – now 2.7%pa

+0.35%:

·         1 year TD – now 2.6%pa

Commonwealth Bank -0.25%:

·         90d TD – now 2.1%pa

+0.6%:

·         2 year TD – now 3.1%pa

·         3 year TD – now 3.2%pa

+0.65%:

·         1 year TD – now 3%pa

CUA -0.1%:

  • 1 year TD – now 2.7%pa
  • 2 year TD – now 2.8%pa
  • 180d TD – now 2.7%pa

-0.15%:

·         3 year TD – now 2.8%pa

-0.25%:

·         30d TD – now 1.5%pa

·         270d TD – now 2.85%PA

Delphi Bank -0.13%:

·         3 year TD – now 2.72%pa

-0.14%:

·         4 year TD – now 2.81%pa

-0.03%:

·         1 year TD – now 2.42%pa

·         2 year TD – now 2.62%pa

-0.04%:

·         5 year TD – now 2.86%pa

G&C Mutual Bank -0.25%:

·         30d TD – now 1.75%pa

·         270d TD – now 1.75%pa

-0.35%:

·         60d TD – now 1.75%pa

+0.1%:

·         5 year TD – now 3.1%pa

+0.2%:

·         4 year TD – now 3.1%pa

+0.3%:

·         3 year TD – now 3.05%pa

+0.4%:

·         2 year TD – now 3%pa

+0.25%:

·         180d TD – now 2.6%pa

Gateway Credit Union +0.11%:

·         1 year TD – now 3.11%pa

+0.2%:

·         180d TD – now 2.51%pa

+0.26%:

·         3 year TD – now 2.76%pa

·         4 year TD – now 2.76%pa

+0.37%:

·         2 year TD – now 2.76%pa

Horizon Credit Union +0.2%:

·         90d TD – now 2.3%pa

IMB -0.1%:

  • 4 year TD – now 2.8%pa
  • 5 year TD – now 3%pa

+0.56%:

·         1 year TD – now 2.96%pa

ING Direct -0.1%:

  • 90d TD – now 2.1%pa

+0.55%:

  • 1 year TD – now 3.05%pa
ME Bank +0.1%:

·         180d TD – now 3%pa

·         1 year TD – now 3%pa

MyState -0.2%:

·         60d TD – now 1.5%pa

-0.15%:

·         30 day TD – now 1.5%pa

-0.1%:

·         270d TD – now 1.6%pa

+0.2%:

·         1 year TD – now 3%pa

NAB +0.45%:

·         2 year TD – now 3.1%pa

+0.5%:

·         3 year TD – now 3.2%pa

Newcastle Permanent +0.1%:

·         90d TD – now 2.8%pa

+0.5%:

·         1 year TD – now 3%pa

P&N Bank -0.25%:

·         60d TD – now 2.25%pa

·         90d TD – now 2.75%pa

·         180d TD – now 2.65%pa

·         270d TD – now 2.45%pa

-0.1%:

·         1 year TD – now 2.8%pa

·         2 year TD – now 2.9%pa

·         3 year TD – now 3%pa

·         4 year TD – now 3%pa

·         5 year TD – now 3%pa

Police Bank -0.6%:

·         60d TD – now 1.75%pa

-0.2%:

·         90d TD – now 2.5%pa

+0.25%:

·         1 year TD – now 2.85%pa

·         2 year TD – now 3%pa

Qudos Bank +0.05%:

·         2 year TD – now 3.1%pa

+0.15%:

·         3 year TD – now 3.2%pa

+0.2%:

·         1 year TD – now 3%pa

Queenslanders CU -0.2%:

  • 60d TD – now 1.85%pa

-0.45%:

  • 90d TD – now 2.15%pa

-0.1%:

  • 180d TD – now 2.55%pa

-0.05%:

  • 270d TD – now 2.55%pa

-0.14%:

  • 1 year TD – now 2.53%pa

-0.23%:

  • 2 year TD – now 2.62%pa

-0.18%:

  • 3 year TD – now 2.67%pa
Rural Bank Limited -1.25%:

·         270d TD – now 1.5%pa

Service One Alliance Bank -0.4%:

·         60d TD – now 1.9%pa

-0.25%

·         30d TD – now 1.25%pa

-0.1%:

·         90d TD – now 2.3%pa

·         180d TD – now 2.45%pa

·         270d TD – now 2.45%pa

+0.05%:

·         1 year TD – now 2.65%pa

Southern Cross Credit Union -0.3%:

·         270d TD – now 2.5%pa

St George Bank +0.4%:

·         2 year TD – now 3.1%pa

+0.45%:

·         3 year TD – now 3.2%pa

+0.55%:

·         1 year TD – now 3%pa

St George Bank QLD/WA/VIC +0.4%:

·         2 year TD – now 3.1%pa

+0.45%:

·         3 year TD – now 3.2%pa

+0.55%:

1 year TD – now 3%pa

Suncorp Bank -0.25%:

  • 30d TD – now 1.65%pa
  • 60d TD – now 1.75%pa
  • 270d TD – now 2.4%pa
  • 3 year TD – now 2.55%pa
  • 4 year TD – now 2.6%pa
  • 5 year TD – now 2.65%pa

-0.05%:

  • 90d TD – now 2.2%pa
  • 180d TD – now 2.65%pa

+0.25%:

  • 1 year TD – now 2.95%pa

+0.3%:

  • 2 year TD – now 3.05%pa
The Mutual +0.1%:

  • 90d TD – now 2.8%pa
  • 2 year TD – now 23.1%pa

+0.5%:

  • 1 year TD – now 3%pa
The Rock -0.2%:

·         60d TD – now 1.5%pa

-0.15%:

·         30 day TD – now 1.5%pa

-0.1%:

·         270d TD – now 1.6%pa

+0.2%:

1 year TD – now 3%pa

UBank -0.1%:

·         180d TD – now 2.91%pa

+0.09%:

·         270d TD – now 2.9%pa

Victoria Teachers Mutual Bank -0.1%:

·         1 year TD – now 2.85%pa

·         2 year TD – now 2.75%pa

·         3 year TD – now 2.75%pa

·         4 year TD – now 2.8%pa

·         5 year TD – now 2.9%pa

-0.2%:

·         90d TD – now 2.45%pa

·         180d TD – now 2.5%pa

·         270d TD – now 2.5%pa

0.25%:

·         30d TD – now 1.55%pa

·         60d TD – now 1.55%pa

Westpac +0.45%:

·         2 year TD – now 3.1%pa

+0.55%:

·         1 year TD – now 3%pa

·         3 year TD – now 3.2%pa

Source: CANSTAR. All rates based on $25,000 deposit. 

Compare Term Deposit Rates

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