The term deposit market showed some signs of upward rate movement in March with several small financial institutions increasing their term deposit rates.
According to the latest Mozo Banking Roundup, there were more term deposit rate increases in March than there have been for many months.
Mozo cautions that rate reductions continued to outweigh increases, indicating that investor need to shop around for the good rates.
Greater Bank increased rates for all terms of one year or more and now has the best rate for all terms from two to five years.
Greater increased its one-year rate by 20 basis points to 2.8 per cent, its two-year rate by 70 bps to 3.2 per cent, its three-year rate by 80 bps to 3.3 per cent, its four-year rate by 90 bps to 3.4 per cent and its five-year rate by 100 bps to 3.5 per cent.
ING Direct increased its one-year rate by five bps to 2.8 per cent and its two-year rate by 20 bps to 2.9 per cent. Victoria Teachers Mutual Bank increased its one-year rate to 2.65 per cent and its two-year rate to 2.85 per cent.
Among the big four banks, ANZ is offering 2.2 per cent for six months, 2.55 per cent for one year and 2.6 per cent for two years.
Commonwealth Bank is offering 2.1 per cent for seven months, 2.25 per cent for one year and 2.3 per cent for two years.
National Australia Bank is offering 2.2 per cent for eight months, 2.35 per cent for one year and 2.4 per cent for two years.
Westpac is offering 2.6 per cent for 10 months, 2.35 per cent for one year and 2.4 per cent for two years.
Among the rate leaders, ME Bank and CUA are offering 2.85 per cent for terms under a year (11 months in CUA’s case and five, seven and nine months for ME).
Teachers Mutual Bank and UniBank are offering the highest one-year rate, at three per cent. Greater Bank (mentioned above) has the highest rates in the market for two, three, four and five-year terms.
Deposit takers that cut their TD rates in March included Bendigo Bank, Macquarie Bank and P&N Bank