Term deposit rates continued to trend down in May, with more than a dozen deposit-taking institutions cutting rates, while only a handful increased rates.
According to the latest Mozo Banking Roundup, the rate cutters included AMP Bank, Arab Bank, Bank of Melbourne, BankSA, Greater Bank, Rabo Direct, and Westpac.
Those that increased rates included Coastline Credit Union, Credit Union SA, Macquarie Bank, Newcastle Permanent and Suncorp.
Among the major banks, Westpac reduced its four and five-month rates by 15 basis points to 1.85 per cent. It also cuts its eight, nine and 11-month rates by 10 bps to 1.9 per cent. It cut its seven-month rate by 70 bps to 1.9 per cent.
Commonwealth Bank went against the trend, increasing its 11-month rate by 70 bps to 2.5 per cent. That is the best rate offered by any of the big banks for a term of less than a year.
ANZ’s best rate under a year is 2.1 per cent for six months, National Australia Bank’s is 2.2 per cent for eight months and Westpac’s is 2.1 per cent for six months.
The TD market rate leaders for terms under a year are Credit Union SA, offering 2.8 per cent for six months, ME Bank, offering 2.8 per cent for a range of terms between five and 11 months, and QT Mutual Bank, offering 2.8 per cent for 11 months.
For terms of a year or more, Teachers Mutual Bank is offering three per cent for one year, Maitland Mutual is offering 3.2 per cent for two years and 3.4 per cent for three years, Greater Bank is offering 3.2 per cent for four years and Greater Bank and Rabo Direct are offering 3.3 per cent for five years.
Mozo says there were barely any changes in at-call rates in May.
Key changes included ANZ dropping the ongoing rate on its Online Saver Account by 15 bps to one per cent (but leaving to introductory rate at 2.55 per cent).
Commonwealth Bank cut the ongoing bonus rate on its GoalSaver Account by 10 bps to 1.7 per cent on balances up to $50,000, while increasing the rate on balances over $250,000 by 10 bps to 1.9 per cent.
Westpac cut its eSaver base rate by five bps to one per cent (but left the introductory rate at 2.51 per cent).
The rate leaders in the at-call markets are ME Bank, which is offering 3.05 per cent as an ongoing bonus rate on its Online Savings Account, and RaboDirect, offering 3.05 per cent for four months as an introductory rate on its High Interest Savings Account.