Savings accounts and term deposit interest rate updates: July 2018

Posted: 1 August 2018 12:02 pm
News

Term deposits are looking more and more attractive as interest rates continue their upward trend.

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, we keep a close eye on interest rate movements so you don’t have to. Here’s what happened in July.

Savings account maximum variable interest rate changes

There were only a few providers to drop the maximum variable interest rate offered on their savings accounts in July, as displayed in the table below. Hunter United Credit Union dropped the rates on both its savings accounts by 10 basis points, while Suncorp also dropped the rate on its Everyday Options Sub Account by just as much.

ProviderProductPrevious max variable rateCurrent max variable rate
SuncorpEveryday Options Sub Account1.50%1.40%
Hunter United Credit UnionPremium Online Investor Account2.15%2.05%
Hunter United Credit Unione-ZYNET Direct Account1.30%1.20%

Savings account base interest rate changes

Several major banks dropped the base interest rates offered on their savings accounts in July. However, because they raised the bonus rates by the same amount, the headline rate (the maximum variable rate) remains unchanged.

CommBank dropped the base interest rate on its NetBank Saver by 30 basis points while also raising the bonus rate by 30 basis points, so the headline rate remained unchanged at 2.51% p.a. Westpac made the same move on its eSaver account, dropping the base rate by 30 basis points while raising the bonus rate by just as much so the headline rate remained 2.51% p.a. And Bank SA, St.George and Bank of Melbourne, all owned by Westpac Group, unsurprisingly did the same across their Maxi Savers.

Because the headline, maximum variable rate remains the same for these accounts these changes might not seem like a big deal. However it means that customers who don't meet the account conditions required to achieve the bonus interest will now earn even less interest due to the lower base rate.

ProviderProductPrevious base variable rateCurrent base interest rate
CommBankNetBank Saver (base)0.80%0.50%
WestpaceSaver (base)0.80%0.50%
Bank SAMaxi Saver (base rate)0.80%0.50%
St.GeorgeMaxi Saver (base rate)0.80%0.50%
Bank of MelbourneMaxi Saver (base rate)0.80%0.50%
INGSavings Maximiser (base rate)1.15%1.00%
INGSavings Accelerator (base rate)1.15%1.00%

Term deposit 12 month interest rate changes

Following on from the previous few months, most of the changes to term deposit rates were positive. Bank Australia increased the rate on its 12 month term deposit by 40 basis points from 2.45% to 2.85%. Teachers Mutual Bank lifted the rate on its 12 month term deposit by 35 basis points from 2.65% to 3.00%, making the account very attractive for savers.

See all the term deposit rate changes for July in the table below.

ProviderProductPrevious fixed rateCurrent fixed rate
Bank AustraliaTerm deposit (12 months over $5,000)2.45%2.85%
RACQ BankTerm deposit (12 months)2.60%2.70%
Teachers Mutual BankMember term deposit (12 months)2.65%3.00%
UniBankTerm deposit (12 months over $5,000)2.80%3.00%
Service One Alliance BankTerm deposit (12 months over $5,000)2.35%2.30%
CUATerm deposit (12 months over $50,000)2.75%2.85%
CUATerm deposit (12 months over $5,000)2.65%2.75%
MyStateTerm deposit (12 months)2.70%2.80%
The RockTerm deposit (12 months)2.70%2.80%
G&C Mutual BankTerm deposit (12 months)2.50%2.75%
INGBusiness term deposit (12 months)2.85%2.90%
AMPTerm deposit (12 months, over $25,000)2.65%2.85%

Not happy with your rate? Instantly compare high interest savings accounts today:

Data indicated here is updated regularly
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Interest Earned
Westpac Life (18-29 year olds only)
3%
0.4%
2.6%
$0
Under 30? You can earn an ongoing, variable 3% p.a. each month you grow your balance (excluding interest earned) and make 5+ transactions from your linked Westpac Choice transaction account. This bonus rate offer is available on balances up to $30,000 for customers aged 18-29.
Westpac Life (18-29 year olds only)
0.85%
0.4%
0.45%
$0
Under 30? You can earn an ongoing, variable 0.85% p.a. each month you grow your balance (excluding interest earned) and make 5+ transactions from your linked Westpac Choice transaction account. This bonus rate offer is available on balances up to $30,000 for customers aged 18-29.
MyState Bank Bonus Saver Account
1.5%
0.15%
1.35%
$0
Ongoing, variable 1.5% p.a. when you deposit at least $20 into the account each month and make 5 or more Visa Debit card transactions from a linked MyState transaction account. Bonus interest available on balances up to $250,000.
Citibank Online Saver
1.55%
0.35%
1.2%
$0
Introductory rate of 1.55% p.a. for 4 months, reverting to a rate of 0.35% p.a. Available on balances Up to $500,000.
Citibank Online Saver
0.35%
0.35%
0%
$0
Introductory rate of 0.35% p.a. for months, reverting to a rate of 0.35% p.a. Available on balances Up to $500,000.
Westpac Life
0.85%
0.4%
0.45%
$0
Ongoing, variable 0.85% p.a. each month you deposit money, and make sure your balance is higher at the end of the month than it was at the beginning. No monthly account-keeping fee.
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