The long-term interest rate leader in the at-call deposit market, ME, has lost its top rating, after cutting the ongoing bonus rate on its Online Savings Account last month.
ME was offering 3.05 per cent (a base rate of 1.3 per cent and an ongoing bonus rate of 1.75 per cent for customers who use ME’s transaction account regularly) but cut the bonus rate by 10 basis points.
According to the latest Mozo Banking Roundup, with ME’s rate down to 2.95 per cent, the new rate leaders in the at-call market are AMP Bank, Australian Unity and Rams, which all offer 3 per cent (with ongoing bonus rates).
RaboDirect offers 3.05 per cent as a four-month introductory rate on its High Interest Savings Account, reverting to 1.8 per cent after the introductory period.
Among the big banks, ANZ has an ongoing bonus rate of 1.81 per cent on its Progress Saver Account and a three-month introductory rate of 2.55 per cent on its Online Saver Account.
Commonwealth Bank has an ongoing bonus rate of 1.7 per cent on its GoalSaver Account and a three-month introductory rate of 2.5 per cent on its NetBank Saver Account.
National Australia Bank has an ongoing bonus rate of 2.55 per cent on its Reward Saver Account and a four-month introductory rate of 1.9 per cent on its iSaver Account.
Westpac has an ongoing bonus rate of 2.30 per cent on its Life Account and a five-month introductory rate of 2.51 per cent on its eSaver Account.
In the term deposit market, the top 12-month rate fell from 2.85 per cent to 2.8 per cent (offered by Police Bank), after the four deposit takers offering 2.85 per cent cut rates last month.
The top rates for terms under 12 months are 2.8 per cent offered by Hunter United for eight months, 2.8 per cent offered by Credit Union SA for seven months and 2.75 per cent offered by ME for nine months.
Mozo says the number of term deposit rate cuts in August was the largest this year, while the number of increases was the lowest.