Westpac slashes term deposit rates

As one of the hold-outs on term deposit rates among the big banks, Westpac has joined the fray to send some of its TD rates up to 40 basis points lower on Friday morning.

Term deposit rates have been plummeting over the past month or so with few deposit takers now offering more than 5% or more in the current market.

In effect, it means it's getting more difficult to find term deposit rates that are offering comfortably higher than the inflation rate.

Westpac has announced significant cuts to its rates, for amounts between $5,000 and $2m, with 4% the new highest rate for amounts invested for either 12 months or 12-24 months, paid annually.

Westpac is the last of the big four to join the rate cutting action, after CBA, NAB and ANZ did so a few weeks ago.

Here are some of the latest Westpac TD rate cuts:

Term length Deposit size Payment frequency Interest rate (Change %)
3-4 months $5,000-$2m End of term 3.25% p.a. (-0.25)
4-5 months $5,000-$2m End of term 3.25% p.a. (0.2)
5-6 months $5,000-$2m End of term 3.45% p.a (-0.2)
6-7 months $5,000-$2m End of term 3.6% p.a. (-0.15)
7-8 months $5,000-$2m End of term 3.6% p.a. (-0.2)
8-9 months $5,000-$2m End of term 3.8% p.a. (-0.05)
12 months $5,000-$2m Annually 4% (-0.25)

The biggest cuts of 40 basis points were on longer terms of between three and five years, paid both annually and monthly. 

ING leaves the 5% club

ING was among a handful of deposit takers still offering term deposit rates above the 5% p.a. mark but all that changed on Monday morning.

ING's six-month rate for amounts over $10,000 is now 4.95% p.a., dropping 10 basis points from 5.05% p.a.

Its new rates are as follows:

Term length Deposit size Payment Frequency Interest rate (Change %)
Four months $10,000-$5m End of term 4.85% p.a. (-0.05)
Six months $10,000-$5m End of term 4.95% p.a. (-0.1)
11 months $10,000-$5m End of term 4.6% p.a. (-0.5)
One year $10,000-$5m End of term 4.95% p.a. (-0.05)
Two year $10,000-$5m End of term 4.4% p.a. (-0.1)

Its six-month and one-year rates at 4.95% are now the highest ING offers.

AMP makes sweeping changes to TD rates

AMP Bank ushered in widespread adjustments to its term deposit rates this week, mostly cuts in line with market movement but also the odd rise.

Its best new rate is 4.90% p.a., a jump of 20 basis points, for amounts between $25,000 and $1,000,000 invested for seven months and payable end of term.

Here are some of the new rates:

Term length Deposit size Payment frequency Interest rate (Change %)
Three months $25,000 - $10m End of term 4.7% p.a. (-0.05)
Seven months $25,000 - $10m End of term 4.9% p.a. (+0.20)
Nine months $25,000 - $10m End of term

4.8% p.a. (-0.05)
One year $25,000 - $10m End of term 4.75 p.a. (-0.1)

AMP offers 0.05% p.a. less for amounts between $5,000 and $25,000.

These rates are for interest paid at maturity; reductions in the rate apply if one opts for a more frequent payment.

BoQ tweaks premier rates

Bank of Queensland has adjusted some of its Premier Investment term deposit rates on Friday morning.

Its best new rate is 4.8%, a five basis point boost, for amounts between $5,000 and $250,000 invested for between four and five months, paid at end of term.

It's now offering 4.8% for the same amount invested for six to seven months, dropping the old rate by 10 basis points. 

Macquarie, Bank of Sydney head north

After some recent downward revision, Macquarie Bank has gone the other way with some of its shorter-term rates this week.

Its best new rate is 4.95% p.a. for amounts of between $5,000 to $1,000,000 for a three-month term, a rise of five basis points.

Four- and six-month terms for the same amount have also risen five basis points to 4.85%, all payable at end of term.

Meantime, Bank of Sydney has added a hefty 1.35% to its three-month TD rate, taking it to 4.90% p.a. for amounts between $1,000 and $1,000,000, also payable at end of term.

Newcastle Greater group goes lesser

The merger partners joined the downward throng this week, cutting up to 50 basis points from many of their TD rates.

Newcastle Permanent and Greater Bank join the long line of deposit takers no longer offering rates above 5% p.a.

Their new best offer is 4.9% p.a. - a cut of 15 basis points - for their six-month rate, paid end of term.

Greater is offering the rate for amounts over $5,000 while Newcastle will take amounts between $1,000 and $1,000,000.

Rates for semi-annual and monthly interest payments are generally around 10 basis points lower across the board for both institutions.

MyState cuts Online/Regular TD rates

The Tassie-based bank is still offering 5% p.a. on its seven-month Online and Regular term deposits for amounts over $5,000, with interest payable end of term.

That's despite a 10-basis point drop on the old rate.

MyState's 12-month rates took a bigger haircut this week with 25 basis points coming off to pay 4.75% p.a.

BCU takes 40bps off two-year TD rates

BCU Bank has taken the axe to its two-year rates for its Regular Income, Standard, and 55-plus Investment term deposits, cutting them by 40 basis points.

The best new rate is now 4% p.a. for a Standard TD for amounts between $1,000 and $999,999.99, with interest paid annually.

Other rate droppers

Among the smaller deposit takers dropping TD rates this week were:

  • Australian Military Bank dropped rates on its Investment Plus and Income Plus term deposits by up to 20 basis points
  • Bank First cut rates by 10 basis points on some 1 Year Regular Income term deposit rates
  • Teachers Mutual and affiliate UniBank decreased some of their three-month TD rates by up to 15 basis points, including Teachers Mutual's Edvest term deposit product
  • Hume has cut 20 basis points from its one-year term deposit rates, paying 4.8% p.a. for interest paid annually and 4.7% p.a. for monthly payments.

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