Term deposit rates scaled down slightly

Peter Terlato 5 December 2016

term deposit rates down

Banks cut savings rates ahead of RBA decision.

Ahead of the Reserve Bank of Australia's (RBA) decision on interest rates tomorrow, some of Australia's major banks have reduced their term deposit (TD) and savings account rates.

St.George Bank didn't make any changes to rates on term deposits with balances less than $250,000 but cut rates on 3-month TDs by 0.20% to 2.00% and 6-month TDs by 0.30% to 2.00%.

12-month TDs fell by 0.60% to 2.00%, 24-month rates by 0.60% to 2.50%, 36-month rates by 0.70% to 2.50%, 48-month rates by 0.30% to 2.50% and 60-month rates by 0.45% to 2.50%.

Westpac followed, trimming 0.10% to 0.60% off term deposit rates on balances greater than $250,000.

St.George also lowered rates on its Retirement Access Plus accounts by 25 basis points, while Westpac did the same for 55+ and Retired and Deeming Passbook accounts.

National Australia Bank (NAB) cut rates on its Retirement Accounts by 0.25%, as well as reducing interest rates for 6-month (-0.05%) and 8-month (-0.20%) term deposit products.

IMB lowered rates on its Wisdom Saver account, from 2.25% to 2%, on balances greater than $49,200.01.

You can see the different bank rate changes in the table below:

Financial institutionProductPrevious rateNew rateChangeDate effective
St.George Bank3 month Term Deposit (>$250,000)2.20%2.00%0.20%28 Nov
St. George Bank6 month Term Deposit (>$250,000)2.30%2.00%0.30%28 Nov
St. George Bank12 month Term Deposit (>$250,000)2.60%2.00%0.60%28 Nov
St. George Bank24 month Term Deposit (>$250,000)3.10%2.50%0.60%28 Nov
St. George Bank36 month Term Deposit (>$250,000)3.20%2.50%0.70%28 Nov
St. George Bank48 month Term Deposit (>$250,000)2.80%2.50%0.30%28 Nov
St. George Bank60 month Term Deposit (>$250,000)2.95%2.50%0.45%28 Nov
Westpac3 month Term Deposit (>$250,000)2.10%2.00%0.10%28 Nov
Westpac6 month Term Deposit (>$250,000)2.20%2.00%0.20%28 Nov
Westpac12 month Term Deposit (>$250,000)2.50%2.00%0.50%28 Nov
Westpac24 month Term Deposit (>$250,000)3.00%2.50%0.50%28 Nov
Westpac36 month Term Deposit (>$250,000)3.10%2.50%0.60%28 Nov
Westpac48 month Term Deposit (>$250,000)2.70%2.50%0.20%28 Nov
Westpac60 month Term Deposit (>$250,000)2.85%2.50%0.35%28 Nov
Westpac12 month Term Deposit (<$250,000)2.60%2.50%0.10%28 Nov
Westpac24 month Term Deposit (<$250,000)3.10%3.00%0.10%28 Nov
Westpac36 month Term Deposit (<$250,000)3.20%3.10%0.10%28 Nov
Westpac48 month Term Deposit (<$250,000)2.80%2.70%0.10%28 Nov
Westpac60 month Term Deposit (<$250,000)2.95%2.85%0.10%28 Nov
St. George BankRetirement Access Plus ($2,000 to <$41,000)1.25%1.00%0.25%28 Nov
St. George BankRetirement Access Plus (>$41,000)2.25%2.00%0.25%28 Nov
Westpac55+ and Retired ($2,000 to <$41,000)1.25%1.00%0.25%28 Nov
Westpac55+ and Retired (>$41,000)2.25%2.00%0.25%28 Nov
WestpacDeeming Passbook1.25%1.00%0.25%28 Nov
WestpacDeeming Passbook2.25%2.00%0.25%28 Nov
NABRetirement Account ($2,000 to <$46,000)1.25%1.00%0.25%01 Dec
NABRetirement Account (>$46,000)2.25%2.00%0.25%01 Dec
NAB6 month Blackboard Term Deposit2.15%2.10%0.05%01 Dec
NAB8 month Blackboard Term Deposit2.40%2.20%0.20%01 Dec
IMBWisdom Saver (>$49,200.01)2.25%2.00%0.25%01 Dec

After the official cash rate was reduced to a record low 1.50% in August some banks rewarded savers by raising term deposit interest rates.

The good news was short-lived, as most banks reduced rates ahead of the September rate decision.

If you're curious as to how changes in the cash rate affect you, check out our in-depth explanation.

Visit our RBA cash rate page for the latest news, updates and forecasts on the upcoming announcement.

Latest term deposits headlines

Picture: Shutterstock

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
Go to site