While lenders are putting their mortgage rates up, a number of deposit-takers have cut at-call and term rates over the past month. Consumers can’t win.
According to the Mozo Banking Roundup every rate change in the at-call segment of the deposit market was a reduction last month. And the slide in TD rates is getting steeper, with many more cuts than increases in the past month.
In the at-call market, Auswide Bank cut five basis points off its Online Saver account, taking the rate to 1.7 per cent.
Bank Australia cut the ongoing rate on its Bonus Saver account by 10 bps to 2.5 per cent. It cut its Online Saver rate by 10 bps to 1.55 per cent.
Bank of Queensland cut 10 bps off the introductory rate of its WebSavings account, taking it to 2.8 per cent for four months, reverting to a base rate of 1.2 per cent (unchanged).
Police Bank cut 25 bps off the ongoing bonus rate of its Bonus Savings account, taking it to 2.4 per cent.
The rate leaders in the at-call market are Move Bank, which is offering an ongoing bonus rate of 2.9 per cent on its Bonus Saver account, and HSBC, which is offering a four-month introductory rate of 3.1 per cent on its Serious Saver account.
In the term deposit market, the rate leader is Arab Bank Australia. It increased its 12-month rate by 35 bps to 3 per cent.
Other deposit-takers that lifted rates were ME Bank, which increased its two-month rate by 40 bps to 2.4 per cent, and RaboDirect, which increased its six-month term by 35 bps to 2.85 per cent.
ANZ, Auswide Bank, Bank Australia and Greater Bank all cut TD rates in January.
The top TD rate for a term under 12 months is 3 per cent, offered by Arab Bank for nine months. Arab Bank also has the top rate for 12 months, at 3 per cent.
The best rate for two years is 2.9 per cent, offered by Defence Bank, ING, Police Bank, Teachers Mutual Bank and UniBank.
The best for three years is 3 per cent, offered by Australian Unity, Heritage Bank, ME Bank, Qudos Bank, RACQ Bank, Teachers Mutual Bank and UniBank.
For investors prepared to commit to very long terms, RaboDirect is offering 3.2 per cent for four years and 3.4 per cent for five years.