Top rates on longer-dated term deposits continued their downward trend in March, while rates on shorter terms held up.
Mozo reported in its latest Banking Roundup that in the term deposit market, the top rate for two years fell from 5 per cent in February to 4.85 per cent last month – on offer from Alex Bank and G&C Mutual Bank.
The top rate for three years dropped from 4.9 per cent to 4.85 per cent – on offer from G&C Mutual Bank.
The top rate for four years fell from remained steady at 4.85 per cent – on offer from Judo Bank.
The top rate for five years rose from 4.85 per cent to 5 per cent – on offer from Rabobank.
For terms under 12 months, the top rate is 5.25 per cent, which Credit Union SA is offering for seven months. This is up from a top rate of 5.2 per cent in February.
And for 12 months, the top rate is steady at 5.3 per cent – on offer from Family First Bank.
In the at-call market, the top ongoing bonus rate remains ME’s offer of 5.55 per cent for customers who deposit a minimum of $2000 into the HomeME Savings Account and grow the balance each month.
The highest introductory rate is Rabobank’s offer of 5.75 per cent for four months (reverting to 4.4 per cent).
The highest base rate is Police Bank’s offer of 5.25 per cent on balances up to $10,000 and Australian Unity’s offer of 5.2 per cent on Freedom Saver, where the savings account is linked to a transaction account.
Among the notable rate changes last month, NAB cut its eight-month TD rate by 88 basis points to 4 per cent. Great Southern Bank added 70 bps to its three-month TD rate and 35 bps to its six and nine-month rates.
Teachers Mutual Bank withdrew its ongoing bonus rate account, Target Saver, from sale. Apart from a high-interest account for children, Might Saver, TMB’s top deposit rate across all brands is now 1.75 per cent.