Savings accounts and term deposit interest rate updates: July 2017
Bad news for savers as interest rates continue to decline.
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 July. And I mean down literally - we saw barely no interest rate increases this month.
Savings account interest rate changes
Newcastle Permanent reduced the interest rates on all four of its savings accounts. The base interest rate on its Smart Saver and Rapid Saver Passbook accounts dropped 25 basis points each, and its Online Savings account base rate dropped 20 basis points to 1.30% p.a. Its Rapid Saver account took the biggest hit, dropping its base interest rate by a huge 50 basis points from 1.50% to just 1.00% p.a.
ING was another notable change in July, dropping the bonus interest rate on its popular Savings Maximiser account by 20 basis points from 1.50% to 1.30% p.a. But the biggest change of all came from Suncorp, which slashed the base interest rate on its Everyday Options account by a whopping 115 basis points from 2.80% down to 1.65% p.a.
On a more positive note, HSBC increased the bonus interest rate on its Serious Saver account by 50 basis points from 0.90% to 1.40% p.a, bringing its maximum variable rate to a competitive 3.00% p.a.
Savings account interest rate changes July 2017:
| Provider | Product | Current variable rate | Previous variable rate |
|---|---|---|---|
| Newcastle Permanent | Smart Saver account (base rate) | 2.75% | 3.00% |
| CUA | eSaver Boost account (bonus rate) | 2.30% | 2.35% |
| CUA | eSaver Reward account (bonus rate) | 2.75% | 2.80% |
| ING | Savings Maximiser (bonus rate) | 1.30% | 1.50% |
| HSBC | Serious Saver (bonus rate) | 1.40% | 0.90% |
| FCCS | Achieve Saver account (bonus rate) | 1.40% | 1.50% |
| P&N | Hi Saver account (bonus rate) | 1.70% | 1.50% |
| Commonwealth Bank | NetBank Saver (base rate) | 1.00% | 1.05% |
| Australian Military Bank | DIY Super Saver account (base rate) | 2.40% | 2.50% |
| ING | Savings Accelerator $150k+ (base rate) | 2.20% | 2.35% |
| Suncorp | Everyday Options (base rate) | 1.65% | 2.80% |
| Greater Bank | Bonus Saver account | 2.00% | 2.20% |
| FCCS | Early Bird Christmas Club account (base rate) | 2.40% | 2.50% |
| Newcastle Permanent | Online Savings Account (base rate) | 1.30% | 1.50% |
| Newcastle Permanent | Rapid Saver account (base rate) | 1.00% | 1.50% |
| Newcastle Permanent | Rapid Saver Passbook account (base rate) | 0.25% | 0.50% |
Term deposit interest rate changes
Term Deposits were slightly more positive than savings account in July, however we still saw a lot of downward movement.
Let’s start on a positive: Bank of Queensland increased the interest rate on its one year term deposit by 145 basis points from 1.15% to 2.60% p.a. Firstmac increased the rate on its two year term deposit by 25 basis points from 2.75% to 3.00% p.a., which is quite competitive in today’s low-rate environment.
Term deposits were not immune to Newcastle Permanent’s interest-rate-slashing streak. It reduced the interest rate on its one year term by 70 basis points from 2.70% p.a to 2.00% p.a. for the base balance bracket.
Macquarie Bank reduced the interest rate on its one year term deposit by 5 basis points to 2.30% p.a. This alone seems insignificant, but the bank had already reduced the rate on its one year term by 10 basis points in June.
Term deposit interest rate changes July 2017:
| Provider | Product | Current rate | Previous rate |
|---|---|---|---|
| ME Bank | Term Deposit (1 year) | 2.80% | 2.85% |
| Arab Bank | Term Deposit (3 years) | 2.70% | 2.80% |
| Macquarie Bank | Term Deposit (1 year) | 2.30% | 2.35% |
| Commonwealth Bank | Term Deposit (1 year) | 2.20% | 2.25% |
| BankVic | Term Deposit (1 year) | 2.55% | 2.45% |
| UniBank | Term Deposit (1 year) | 2.85% | 3.00% |
| Greater Bank | Term Deposit (1 year) | 2.55% | 2.80% |
| Firstmac | Term Deposit (2 years) | 3.00% | 2.75% |
| Suncorp Bank | Term Deposit (90 days) | 2.20% | 2.00% |
| B&E | Term Deposit (1 year) | 2.40% | 2.45% |
| Newcastle Permanent | Term Deposit (1 year) | 2.00% | 2.70% |
| Bank of Queensand | Term Deposit (1 year) | 2.60% | 1.15% |
Curious to see what happened in June 2017? Take a look at our June round-up for all the interest rate changes across savings accounts, transaction accounts and term deposits, and check back in next month to find out what happened in August. All above rates were correct at the time of publication.
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