Savings account and term deposit interest rate updates: June 2017
Finally some good news for savers, with St.George Group increasing the interest rate on its Maxi Saver accounts.
With constant changes to the interest rates of savings accounts, term deposits and transaction accounts, it can be hard to keep track of who is offering what. Here at finder.com.au, we keep a close eye on interest rate movements so you don’t have to. Here’s what went down in June.
Savings account interest rate changes
Last month we saw CBA, Westpac and ANZ each lower the interest rate on their savings accounts by up to 15 basis points.
This month is more positive. St.George Group has increased the variable bonus interest rate across its Maxi Saver accounts by 25 basis points from 1.75% to 2.00%. This includes the St.George Maxi Saver, the Bank SA Maxi Saver and the Bank of Melbourne Maxi Saver accounts.
Beyond Bank also increased the variable base interest rate on its monEsaver account by 20 basis points to 2.10% for balances over $200,000 and Newcastle Permanent reduced the variable base rate on its Smart Saver Account by a significant 25 basis points to 2.75%. Although, in today’s low interest rate environment, this is still a competitive rate.
Westpac has been a bit sneaky and lowered the base rate on its eSaver Migrant account by 5 basis points while also increasing the bonus rate by the same amount. This means that the headline maximum variable rate remains the same at 2.51%, however, after the introductory period, customers will earn interest at a much lower rate.
Savings account changes June 2017:
| Provider | Product | Current variable rate | Previous variable rate |
|---|---|---|---|
| First Choice Credit Union | On Call Savings Account (base rate) | 0.01% | 0.10% |
| Newcastle Permanent | Smart Saver Account (base rate) | 2.75% | 3.00% |
| Westpac | eSaver Account Migrants (base rate) | 1.00% | 1.05% |
| Westpac | eSaver Account Migrants (bonus rate) | 1.51% | 1.46% |
| Bank of Melbourne | Maxi Saver (bonus rate) | 2.00% | 1.75% |
| St.George | Maxi Saver (bonus rate) | 2.00% | 1.75% |
| BankSA | Maxi Saver (bonus rate) | 2.00% | 1.75% |
| ANZ | Business Online Saver (base rate) | 0.60% | 0.50% |
| Beyond Bank | monEsaver Account (base rate) | 2.10% | 1.90% |
Term deposit interest rate changes
We saw much more movement with term deposits in May than June, although there have been some significant rate changes to call attention to. First Choice Credit Union reduced the fixed interest rate on its one-year term deposit by 45 basis points, from 2.70% to 2.25%.
Similarly, Greater Bank lowered the fixed interest rate on its one-year term deposit by a huge 60 basis points, from 2.70% to a low 2.10% for balances over $5,000. However, strangely, it also increased the interest rate for its 180-day term deposit from 2.60% to 2.85%, which is quite competitive for a term deposit of that length.
Earlier in the month, Macquarie Bank reduced the interest rate of its one-year term deposit by 5 basis points to 2.40%, and again later in the month to the current rate of 2.35%.
Term deposit interest rate changes June 2017:
| Provider | Product | Current rate | Previous rate |
|---|---|---|---|
| Macquarie Bank | Term Deposit (1 year) | 2.40% | 2.45% |
| Macquarie Bank | Term Deposit (1 year) | 2.35% | 2.40% |
| Suncorp | Term Deposit (180 days) | 2.25% | 2.30% |
| Suncorp | Term Deposit Online (90 days) | 2.45% | 2.40% |
| Greater Bank | Term Deposit (1 year) | 2.10% | 2.70% |
| Greater Bank | Term Deposit (180 days) | 2.85% | 2.60% |
| AMP Term Depsoit | Term Deposit (180 days) | 2.15% | 2.40% |
| MOVE | Term Deposit (1 year) | 2.50% | 2.65% |
| First Choice Credit Union | Term Deposit (1 year) | 2.25% | 2.70% |
Curious to see what happened in May 2017? Check out our round-up of May interest rate changes across savings accounts, transaction accounts and term deposits and check back in next month to find out what happened in July.
The latest in banking news
- Xinja is closing down, what does this mean for customers?
- Tips for parents as school banking programs to be banned in Victoria
- Revolut launches in Australia: How does it compare to rival neobanks and fintechs?
- Here’s why Australians are flocking to the new digital banks
- Big Four banks announce bushfire relief packages
