Investors looking for the best deposit rate should focus on the at-call market, where introductory and ongoing bonus rates of 3 percent are available. In the term deposit market the best rate for terms up to 12 months is 2.8 per cent.
According to the latest Mozo Banking Roundup, mist of the movement in the deposit market was down in October.
In the at-call market, Commonwealth Bank cut the ongoing bonus rate on its GoalSaver account by five basis points to 1.65 per cent for balances up to $50,000. However, for balances between $50,000 and $250,000 the bonus rate was increased by 20 bps to 2 per cent. And for amounts between $250,000 and $1 million the bonus rate was increased 35 bps to 2.5 per cent.
St George Bank, Bank of Melbourne and BankSA (all subsidiaries of Westpac) cut the introductory bonus rate on their MaxiSaver by 20 bps to 2.6 per cent. They increased the ongoing bonus rate of their Incentive Saver products by 15 bps to 2 per cent.
Coastline Credit Union and Credit Union SA cut their introductory rates, while Newcastle Permanent and Regional Bank Australia cut their ongoing bonus rates.
The rate leaders in the at-call deposit market are AMP Bank, which offers a 3 per cent ongoing bonus rate on its Bett3r Save Account, and Rams, which is also offering a 3 per cent bonus rate on its Saver Account.
RaboDirect has the top introductory rate, offering 3.05 per cent for four months on its High Interest Savings Account.
Among the big banks, ANZ is offering an ongoing bonus rate of 1.81 per cent on Progress Saver and a three-month introductory rate of 2.55 per cent on Online Saver.
Commonwealth bank is offering an ongoing bonus rate of 1.65 per cent on GoalSaver and a three-month introductory rate of 2.55 per cent on NetBank Saver.
NAB is offering an ongoing bonus rate of 2.55 per cent on Reward Saver and a four-month introductory rate of 1.9 per cent on iSaver.
Westpac is offering an ongoing bonus rate of 2.3 per cent on Life and a five-month introductory rate of 2.51 per cent on eSaver.
In the term deposit market, Mozo says the number of rate cuts far outweighed increases. There were, however, a couple of significant increases. ME increased its six-month term by 15 bps to 2.8 per cent, which is the best rate available under 12 months.
ME also increased its 12-month rate by 10 bps to 2.8 per cent.
RaboDirect increased its four-year rate by 15 bps to 3.15 per cent – the best rate available for that term.
Commonwealth Bank and Westpac (along with its subsidiaries) were among the banks that cut their TD rates last month. Also AMP Bank, Credit Union SA, firstmac, Heritage Bank, ING, Macquarie bank, RACQ Bank and Teachers Mutual bank
Among the big banks, the top rates under 12 months are 2.2 per cent offered by ANZ for nine months, 2 per cent offered by CBA for three months, 2.2 per cent offered by NAB for eight months and 2.4 per cent offered by Westpac for eight months.
For 12-month terms, ANZ is offering 2.4 per cent, CBA 2.2 per cent, NAB 2.4 per cent and Westpac 2.3 per cent.
The TD rate leaders are ME, with its six-month and 12-month rates mentioned above, Police Bank, which is offering 3 per cent for two years, QBank, which is offering 3.1 per cent for three years, and RaboDirect, which is offering 3.15 per cent for four years and 3.25 per cent for five years.