Savings accounts and term deposit interest rate updates: April 2018
April was fairly boring – until AMP dropped its savings account rate by 75 basis points overnight.
April was fairly boring – until AMP dropped its savings account rate by 75 basis points overnight.With constant changes to the interest rates on savings accounts and term deposits, 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 happened in April.
Savings account interest rate changes
Compared to the previous 12 months, April was relatively quiet in regard to interest rate changes on savings accounts. However, there were a few notable movements. ING dropped the maximum variable rate on its Business Optimiser account by 40 basis points from 2.20% down to 1.80% p.a.
AMP overnight dropped the maximum variable interest rate on its Bett3r Save savings account from a market-leading 3.00% down to just 2.25% p.a., reflecting a cut of 75 basis points. The rate change officially comes into effect on 1 June 2018; however, since you need to deposit $2000 in the previous month to be eligible for the bonus interest, new customers won't be able to access the 3.00% rate this month. This means if you're an existing Bett3r Save customer, you'll still be eligible for the full 3.00% interest rate this month provided you meet the conditions.
| Provider | Product | Previous max variable rate | Current max variable rate |
|---|---|---|---|
| AWA Alliance Bank | Pensioner Account | 2.00% | 1.70% |
| Maleny Credit Union | E Saver Account | 1.45% | 1.35% |
| ING | Business Optimiser | 2.20% | 1.80% |
| Suncorp | 55 Plus Account (balances $100,000+) | 2.30% | 2.40% |
| IMB | Wisdom Saver (balances $250,000+) | 1.75% | 2.00% |
| The Rock Building Society | Special eSaver Account (balances $50,000+) | 2.40% | 2.25% |
| Bank First | Pension Account (balances $48,600+) | 2.50% | 2.40% |
| AMP | Bett3r Save account | 3.00% | 2.25% |
Term deposit 12-month interest rate changes
This has to be the quietest month for term deposits in the past year. And what's even more surprising, the majority of the below interest rates were actually increased, rather than cut, which is a welcome change for savers.
AMP increased the interest rate on its 12-month term deposit from 2.25% to 2.45% p.a. for deposits of more than $5000. Bank of Sydney lifted the rate on its Online Special Term Deposit by a huge 50 basis points, from 2.25% to a competitive 2.75% p.a. for balances above $1000.
| Provider | Product | Previous rate | Current rate |
|---|---|---|---|
| CUA | Term Deposit (12 months, < $5000) | 2.55% | 2.60% |
| AMP | Term Deposit (12 months, < $5000) | 2.25% | 2.45% |
| Bank of Sydney | Online Special Term Deposit (12 months, < $1000) | 2.25% | 2.75% |
| ANZ | Term Deposit (12 months, <$5000) | 1.70% | 1.60% |
Check out our March 2018 interest rate round-up to see what changes were made last month, and don't forget to check in next month for all the changes made in May.
Not happy with your rate? Instantly compare high interest savings accounts today:
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