July’s cash rate increase fueled additional activity in term deposits, with a number of banks raising rates over the past week by as much as 200 basis points.
Lock in a term deposit or stick to a high-interest savings account? It’s a question many Australian savers are now asking following the incoming increases in savings account and term deposit rates.
Earlier this week, Treasurer Jim Chalmers expressed concern to some bank CEOs about rising rates, these benefits are not passed on to savers as quickly as rate cuts are passed on to savers.
“I think that’s the reality, and I think that’s disappointing,” the treasurer said. ABC RN Breakfast.
“If people aren’t getting the kind of returns they think they should be getting from their savings, I would encourage them to shop around and find a bank that’s willing to treat you better.
“The victims of these low interest rates that we have had for a while are savers. We want them to be the beneficiaries of rising interest rates in the same way that they were victimized by rates when they’ve hit these all-time lows, and so I encourage and urge the banks to do the right thing.”
A number of banks, including CommBank, Judo Bank, Bank of Us, The Mutual Bank and Credit Union SA, passed on larger term deposit rate increases over the past week.
CommBank Term Deposit Rate Increase
On Monday, ahead of Tuesday’s RBA decision, CommBank raised term deposit rates by up to 60 basis points.
Highlights of this increase in term deposits with a minimum deposit balance of $5,000 include:
- 13 months, paid annually: Increase of 60 basis points to 1.20% per year
- 24 months, paid annually: Increase of 50 basis points to 1.50% per year
- 36 months, paid annually: Increase of 25 basis points to 1.75% per year
Following the RBA’s decision to raise the cash rate, CommBank announced the introduction of a new special 15 month term deposit offer of 2.50% per annum starting July 15th.
Judo Bank Term Deposit Rate Rise
Judo Bank has raised term deposit rates by up to 95 basis points for savers looking for the security of storing cash for the short term.
Additions to Judo Bank’s term deposit portfolio with a minimum deposit balance of $1,000 include:
- 3 months, paid monthly: Increase of 75 basis points to 1.80% per year
- 3 months, paid at the end of the mandate: Increase of 75 basis points to 1.90% per year
- 6 months, paid monthly: Increase of 95 basis points to 2.70% per year
- 6 months, paid at the end of the mandate: Increase of 95 basis points to 2.80% per year
Bank of Us Term Deposit Rate Increase
The Tasmanian bank raised term deposit rates this week by up to 110 basis points.
Highlights of this increase in term deposits with a minimum deposit balance of $5,000 include:
- 12 months, paid at the end of the mandate: Increase of 110 basis points to 2.40% per annum
- 24 months, paid annually: Increase of 70 basis points to 2.65% per year
- 36 months, paid annually: Increase of 75 basis points to 2.65% per year
The increase in the rate of term deposits of the Mutual Bank
Mutual Bank raised term deposit rates this week by as much as 55 basis points.
Highlights of this increase in term deposits with a minimum deposit balance of $5,000 include:
- 24 months, paid monthly: Increase of 50 basis points to 2.90% per year
- 24 months, paid annually: increase of 50 basis points to 3.00% per year
- 36 months, paid monthly: Increase of 55 basis points to 3.20% per annum
- 36 months, paid annually: Increase of 55 basis points to 3.30% per annum
Increase in the rate of term deposits of Credit Union SA
Credit Union SA raised term deposit rates by up to 200 basis points, or a full two percentage points.
Highlights of this increase in term deposits with a minimum deposit balance of $5,000 include:
- 1 year, paid at the end of the mandate: Increase of 200 basis points to 3.00% per annum
- 2 years, paid at the end of the mandate: Increase of 180 basis points to 3.30% per annum
- 3 years, paid at the end of the mandate: Increase of 170 basis points to 2.70% per year
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Rates based on $50,000 deposit for 12 months. Rates correct as of July 8, 2022. See disclaimer.
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