Banks and other deposit-takers have taken up in the new year where they left off last year – cutting savings rates. Bargain hunters will have to work hard to find at-call and term deposit rates at 3 per cent.
According to the latest Mozo Banking Roundup, while there were some at-call and term deposit rate increase in January, the prevailing trend continues to be lower savings rates.
In the at-call market, three of the four major banks – Commonwealth Bank, NAB and Westpac – cut rates on their savings accounts.
Commonwealth Bank cut the introductory rate and the base rate on its NetBank Saver account: the introductory rate was cut by four basis points to 2.51 per cent; and the base rate as cut by 20 bps to 0.8 per cent.
NAB left the introductory rate on its iSaver account unchanged at 1.90 per cent but cut the ongoing rate by 25 bps to 0.8 per cent.
Westpac cut the introductory rate on its eSaver account by 10 bps to 2.41 per cent but left the base rate unchanged.
Among other deposit-takers Macquarie Bank, Bank of Queensland and Hume Bank all cut the base rates on their savings accounts.
The rate leaders in the at-call market are AMP, which is offering 3 per cent as an ongoing bonus rate on its Bett3r Save Account; Coastline Credit Union, which is offering an introductory rate of 3.05 per cent for three months on its eXtreme Saver account; and RaboDirect, which is offering a four-month introductory rate of 3.05 per cent.
In the term deposit market there were a few rate increase but the trend was down, as it has been for some time.
AMP increased its six, seven and nine-month rates by 25 bps
ANZ increased its four-month advance notice rate by 40 bps to 2.4 per cent.
UBank increased its six and 12-month rates by 15 bps to 2.79 per cent. However, before the month was over the six-month rate was cut back to 2.64 per cent.
A number of deposit-takers cut term rates, although most of the reduction were modest – in the five to 10 bps range.
The rate leaders for term deposits with terms under 12 months are ME (2.7 per cent for eight and nine months) and Qudos Bank (2.7 per cent for nine and 11 months).
The top 12-month rate is UBank’s offer of 2.79 per cent. Police Bank if offering 2.9 per cent for two years.
Several deposit-takers are offering 3 per cent for three years – Big Sky, Greater Bank, Heritage Bank, Maitland Mutual, ME, PCCU, QBank and Qudos Bank.
Greater Bank has the top four and five-year rates – 3.1 per cent and 3.2 per cent respectively.
Among the big banks, ANZ is offering 2.4 per cent for four months, CBA is offering 2.3 per cent for five months, NAB is offering 2.3 per cent for five months and Westpac is offering 2.5 per cent for 10 months.
ANZ is offering 2.3 per cent for 12 months, CBA 2.2 per cent over the same term, NAB 2.4 per cent and Westpac 2.3 per cent.