Savings accounts and term deposit interest rate updates: August 2017
Sadly, August saw ME Bank finally reduce the interest rate on its high interest savings account.
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 August.
Savings account interest rate changes
ME Bank previously offered one of the only savings accounts in the market that still had an interest rate over 3.00%. Sadly, it dropped the bonus rate on its Online Savings Account by 10 basis points this month, bringing its maximum variable rate down from 3.05% p.a to 2.95% p.a.
RaboDirect used this same tactic, increasing the bonus rate on its High Interest Savings Account by 10 basis points while dropping its base rate by just as much. It also dropped the base interest rate on its Premium Saver by 5 basis points to 0.85% p.a.
Westpac snuck in a rate decrease today on the last day of the month on both its Reward Saver and Kids Reward Saver accounts, dropping the bonus rates by 25 basis points each down to 1.49% p.a.
| Provider | Product | Current variable rate | Previous variable rate |
|---|---|---|---|
| RaboDirect | High Interest Savings account (base rate) | 1.80% | 1.90% |
| Rabo Direct | High interest savings account (bonus rate) | 1.25% | 1.15% |
| RaboDirect | Premium Saver Account (base rate) | 0.85% | 0.90% |
| CBA | Pensioner Security Account (base rate) | 2.00% | 2.25% |
| Credit Union SA | 55+ Account (base rate) | 2.00% | 2.50% |
| MOVE | Express Saver Account (base rate) | 2.20% | 2.40% |
| Heritage Bank | Cash Management Account (base rate) | 1.75% | 1.80% |
| Heritage Bank | Target Bonus (base rate) | 0.10% | 0.20% |
| Westpac | Reward Saver (bonus rate) | 1.49% | 1.74% |
| Westpac | Kids Reward Saver (bonus rate) | 1.49% | 1.74% |
| Bank of Queensland | WebSavings Account (bonus rate) | 1.35% | 1.20% |
| ME Bank | Online Savings Account (bonus rate) | 1.65% | 1.75% |
Term deposit interest rate changes
The biggest change we saw in August across term deposits was by QT Mutual Bank, which dropped the interest rate on its two year term by 20 basis points to 2.80% p.a.
Most of the other rate changes were by 10 basis points, and sadly most were a decrease. Greater Bank, Teachers Mutual, Australian Military Bank, Newcastle Permanent and CUA dropped the rate on their one year terms by 10 basis points each during the month.
Delphi Bank was one of the few which increased its rate, increasing the rate on its one year term by 10 basis points to 2.00% p.a. ANZ also increased the rate on its one year term from 1.70% p.a to 1.80% p.a.
| Provider | Product | Current rate | Previous rate |
|---|---|---|---|
| Arab Bank | Term Deposit (90 days) | 2.40% | 2.50% |
| Greater Bank | Term Deposit (1 year) | 2.45% | 2.55% |
| Teachers Mutual Bank | Term Deposit (1 year) | 2.75% | 2.85% |
| UniBank | Term Deposit (1 year) | 2.75% | 2.85% |
| QT Mutal Bank | Term Deposit (2 years) | 2.80% | 3.00% |
| Ubank | Personal Term Deposit online (1 year) | 2.64% | 2.71% |
| RaboDirect | Term Deposit (2 years) | 2.80% | 2.90% |
| B&E Personal Banking | Term deposit (2 years) | 2.45% | 2.55% |
| Australian Military Bank | Teen Plus Term Deposit (1 year) | 2.15% | 2.35% |
| Australian Military Bank | Income Plus Term Deposit (1 year) | 2.60% | 2.65% |
| AMP | Term Deposit (180 days) | 2.35% | 2.30% |
| CUA | Term Deposit (1 year) | 2.50% | 2.60% |
| Firstmac | Term Deposit (1 year) | 2.71% | 2.85% |
| Newcastle Permanent | Term Deposit (1 year) | 2.50% | 2.60% |
| Delphi Bank | Term Deposit (1 year) | 2.00% | 1.90% |
| P&N | Term deposit (1 year) | 2.15% | 2.25% |
| ANZ | Term Deposit (1 year) | 1.80% | 1.70% |
| Macquarie Bank | Term Deposit (1 year) | 2.35% | 2.30% |
All above rates were correct at the time of publication.
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