Savings accounts and term deposit interest rate updates: January 2019
January was an unusually quiet month for interest rate changes across savings accounts and term deposits.
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.
| Provider | Product | Previous max variable rate p.a. | Current max variable rate p.a. |
|---|---|---|---|
| Bank Australia | Bonus Saver Account | 2.60% | 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%.
| Provider | Product | Previous max variable rate p.a. | Current max variable rate p.a. |
|---|---|---|---|
| Bank of Sydney | 12 month Term Deposit (online exclusive) | 2.85% | 2.88% |
| ANZ | 12 month Term Deposit | 1.40% | 1.30% |
| ME | 12 month Term Deposit | 2.80% | 2.75% |
| ME | 12 month Business Term Deposit | 2.80% | 2.75% |
| Greater Bank | 12 month Term Deposit | 2.70% | 2.60% |
| Bank Australia | 12 month Term Deposit | 2.85% | 2.70% |
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