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Savings accounts and term deposit interest rate updates: January 2019

Posted: 4 February 2019 11:52 am
News

January was an unusually quiet month for interest rate changes across savings accounts and term deposits.

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 January 2019.

Savings account interest rate changes

Perhaps everyone was still on holidays in January, because there was only one savings account interest rate change for the month. Bank Australia dropped the maximum variable rate on its Bonus Saver Account by 10 basis points from 2.60% p.a. to 2.50% p.a.

In 2018 we saw many banks, including the Big Four, drop the interest rate offered on their savings accounts. We've been in a fairly low-rate environment for years now, with only a handful of accounts offering above the 2.80% p.a. mark. For example, Rabo Direct's High Interest Savings Account still offers 3.05% p.a. for the first four months after opening the account, and UBank's USaver Account offers an ongoing 2.87% p.a. each month you meet the deposit conditions.

Hopefully we'll see some providers start to lift their interest rates on savings accounts this year, although January showed no sign of this happening.

ProviderProductPrevious max variable rate p.a.Current max variable rate p.a.
Bank AustraliaBonus Saver Account2.60%2.50%

12 month term deposit interest rate changes

We did see a few providers change their rates on 12 month term deposits in January, and most of the changes were negative. Bank of Sydney increased the rate on its 12 month online exclusive term deposit ever so slightly from 2.85% to 2.88%.

ProviderProductPrevious max variable rate p.a.Current max variable rate p.a.
Bank of Sydney12 month Term Deposit (online exclusive)2.85%2.88%
ANZ12 month Term Deposit1.40%1.30%
ME12 month Term Deposit2.80%2.75%
ME12 month Business Term Deposit2.80%2.75%
Greater Bank12 month Term Deposit2.70%2.60%
Bank Australia12 month Term Deposit2.85%2.70%

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
1.65%
0.15%
1.5%
$0
Ongoing, variable 1.65% p.a. when you deposit at least $20 into the account each month and make five or more Visa Debit card transactions from a linked MyState transaction account.
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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