Savings accounts and term deposit interest rate updates: June 2018
Following April and May's upward trend, term deposit rates once again climbed higher throughout June.
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 June.
Savings account interest rate changes
The most notable change across savings accounts in June was Citibank increasing the maximum variable interest rate on its Online Savings Account from 2.85% p.a. up to 3.05% p.a. This account now offers one of the highest interest rates in the market, and is on par with Rabo Direct's High Interest Savings Account. However, both accounts offer this high rate for the first four months only.
| Provider | Product | Previous max variable rate | Current max variable rate |
|---|---|---|---|
| Citibank | Online Saver Account | 2.85% | 3.05% |
| Heritage Bank | Money Manager Account ($10,000+) | 1.00% | 0.85% |
| Heritage Bank | Cash Management Account ($10,000+) | 0.75% | 0.60% |
| Regional Australia Bank | Savings Booster Account | 2.65% | 2.55% |
| Border Bank | Bonus Saver Account | 2.75% | 2.65% |
| ING | Savings Accelerator | 2.20% | 1.15% |
Term deposit 12-month interest rate changes
Interestingly, term deposit rates continued to climb in June, following their upward trend in April and May also. This is a good sign for savers looking to lock their money away with a fixed rate.
ING, Teachers Mutual Bank and Bank First each increased their 12 month term deposit accounts by 15 basis points. ING now offers a competitive 2.85% on its personal and business term deposits, which is now higher than almost all savings accounts in the market.
| Provider | Product | Previous max variable rate | Current max variable rate |
|---|---|---|---|
| ING | Term Deposit (12 months) | 2.70% | 2.85% |
| ING | Business Term Deposit (12 months) | 2.70% | 2.85% |
| BankVIC | Term Deposit (2 years) | 2.60% | 2.70% |
| Rural Bank ONE | Business Term Deposit Online (12 months) | 2.50% | 2.60% |
| Rural Bank ONE | Personal Term Deposit Online (12 months) | 2.50% | 2.60% |
| Rural Bank ONE | DIY Super Term Deposit Online (12 months) | 2.50% | 2.60% |
| Beyond Bank | Term Deposit (12 months) | 2.40% | 2.45% |
| Macquarie Bank | Term Deposit (180 days) | 2.50% | 2.55% |
| AMP | Term Deposit (12 months) | 2.60% | 2.65% |
| Teachers Mutual Bank | Term Deposit (12 months) | 2.65% | 2.80% |
| Bank first | Regular Income Term Deposit (12 months) | 2.55% | 2.70% |
| Bank first | Term Deposit (12 months) | 2.45% | 2.60% |
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