Savings account and term deposit interest rate updates: May 2017
Three of the Big Four reduced the interest on their savings accounts in May.
Savings and transaction accounts interest rate changes
The Big Four were busy reducing interest rates this month, with CBA, Westpac and ANZ each reducing the interest on their savings accounts. CBA didn’t waste any time, lowering the variable interest rate on the base balance bracket of its Goal Saver account from 1.80% p.a to 1.70% p.a. on 1 May. Later in the month Westpac lowered the variable rate on its eSaver by five basis points to 1.00% p.a., and ANZ reduced the base rate on its Online Saver by 15 basis points to 1.00% p.a.
NAB delivered some good news for savers in May, announcing that new customers who open an iSaver account will be eligible to earn the introductory bonus interest rate of 1.90% p.a. on balances up to $20 million, up from the previous threshold of $1 million.
Transaction accounts were fairly quiet in May, however we did see Illawarra Credit Union reduce the variable interest rate on its Everyday Plus account by a whopping 70 basis points from 1.70% p.a. to 1.00% p.a, for balances between $2,000 and $50,000.
Savings and transaction account changes in May 2017:
|Provider||Product||Current variable rate||Previous variable rate|
|CBA||Goal Saver (max rate base balance)||1.70%||1.80%|
|Horizon Credit Union||Reard Saver||1.75%||2.00%|
|Delphi Bank||Midas Account||1.40%||1.65%|
|Westpac||eSaver (base rate)||1.00%||1.05%|
|ANZ||Online Saver (base rate)||1.00%||1.15%|
|Illawarra Credit Union||Everyday Plus||1.00%||1.70%|
Term deposit interest rate changes
We saw a lot of providers reduce their term deposit interest rates in May, with the most significant from Westpac Group banks. Bank of Melbourne, Bank SA and St. George, all part of the Westpac Group, each lowered their fixed interest rates on three year terms by 60 basis points from 3.20% to 2.60%. Westpac itself lowered its three year term rate from 3.10% to 2.50%.
There were a few providers who increased rates in May. Suncorp Bank increased the fixed interest rate on its 180 day term deposit by 5 basis points to 2.30%, however lowered the rate on its one year term from 2.45% to 2.35%. Macquarie Bank also increased the rate on its 90 day term deposit by five basis points to 2.40%.
The biggest increases were from Newcastle Permanent, which increased the rate on its 1 year term by 20 basis points, and Credit Union SA which increased its 180 term interest rate by a significant 40 basis points.
Term deposit account interest rate changes in May 2017:
|Provider||Product||Current rate||Previous rate|
|Bank of Melbourne||Term Deposit (3 Years)||2.60%||3.20%|
|Bank SA||Term Deposit (3 Years)||2.60%||3.20%|
|St. George||Term Deposit (3 Years)||2.60%||3.20%|
|Westpac||Term Deposit (3 Years)||2.50%||3.10%|
|Suncorp Bank||Term Deposit (180 Days)||2.30%||2.25%|
|Suncorp Bank||Term Deposit (1 Year)||2.35%||2.45%|
|AMP||Term Deposit (180 Days)||2.40%||2.45%|
|B&E||Term Deposit (6 months)||2.30%||2.40%|
|CUA||Term Deposit (1 Year)||2.60%||2.70%|
|People's Choice Credit Union||Term Deposit (90 Days)||2.30%||2.40%|
|Greater Bank||Term Investment (1 Year)||2.70%||2.80%|
|Macquarie Bank||Term Deposit (90 Days)||2.40%||2.35%|
|Credit Union SA||Term Investment (180 days)||2.80%||2.40%|
|Arab Bank Australia||Term Deposit (2 Years)||2.60%||3.00%|
|Rabo Direct||Term Deposit Online (90 Days)||2.30%||2.40%|
|Bendigo Bank||Term Deposit (2 Years)||2.60%||2.75%|
|Service One Alliance Bank||Term Deposit (2 Years)||2.55%||2.75%|
|Newcastle Permanent||Term Deposit (1 Year)||2.80%||2.60%|
|Teachers Mutual Bank||Term Deposit (180 Days)||2.70%||2.80%|
Curious to see what happened in April 2017? Read our round up of April interest rate changes across savings accounts, transaction accounts and term deposits, and check back in next month to see what happened in June.