Term deposit rates scaled down slightly

Peter Terlato 5 December 2016 NEWS

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 institution Product Previous rate New rate Change Date effective
St.George Bank 3 month Term Deposit (>$250,000) 2.20% 2.00% 0.20% 28 Nov
St. George Bank 6 month Term Deposit (>$250,000) 2.30% 2.00% 0.30% 28 Nov
St. George Bank 12 month Term Deposit (>$250,000) 2.60% 2.00% 0.60% 28 Nov
St. George Bank 24 month Term Deposit (>$250,000) 3.10% 2.50% 0.60% 28 Nov
St. George Bank 36 month Term Deposit (>$250,000) 3.20% 2.50% 0.70% 28 Nov
St. George Bank 48 month Term Deposit (>$250,000) 2.80% 2.50% 0.30% 28 Nov
St. George Bank 60 month Term Deposit (>$250,000) 2.95% 2.50% 0.45% 28 Nov
Westpac 3 month Term Deposit (>$250,000) 2.10% 2.00% 0.10% 28 Nov
Westpac 6 month Term Deposit (>$250,000) 2.20% 2.00% 0.20% 28 Nov
Westpac 12 month Term Deposit (>$250,000) 2.50% 2.00% 0.50% 28 Nov
Westpac 24 month Term Deposit (>$250,000) 3.00% 2.50% 0.50% 28 Nov
Westpac 36 month Term Deposit (>$250,000) 3.10% 2.50% 0.60% 28 Nov
Westpac 48 month Term Deposit (>$250,000) 2.70% 2.50% 0.20% 28 Nov
Westpac 60 month Term Deposit (>$250,000) 2.85% 2.50% 0.35% 28 Nov
Westpac 12 month Term Deposit (<$250,000) 2.60% 2.50% 0.10% 28 Nov
Westpac 24 month Term Deposit (<$250,000) 3.10% 3.00% 0.10% 28 Nov
Westpac 36 month Term Deposit (<$250,000) 3.20% 3.10% 0.10% 28 Nov
Westpac 48 month Term Deposit (<$250,000) 2.80% 2.70% 0.10% 28 Nov
Westpac 60 month Term Deposit (<$250,000) 2.95% 2.85% 0.10% 28 Nov
St. George Bank Retirement Access Plus ($2,000 to <$41,000) 1.25% 1.00% 0.25% 28 Nov
St. George Bank Retirement Access Plus (>$41,000) 2.25% 2.00% 0.25% 28 Nov
Westpac 55+ and Retired ($2,000 to <$41,000) 1.25% 1.00% 0.25% 28 Nov
Westpac 55+ and Retired (>$41,000) 2.25% 2.00% 0.25% 28 Nov
Westpac Deeming Passbook 1.25% 1.00% 0.25% 28 Nov
Westpac Deeming Passbook 2.25% 2.00% 0.25% 28 Nov
NAB Retirement Account ($2,000 to <$46,000) 1.25% 1.00% 0.25% 01 Dec
NAB Retirement Account (>$46,000) 2.25% 2.00% 0.25% 01 Dec
NAB 6 month Blackboard Term Deposit 2.15% 2.10% 0.05% 01 Dec
NAB 8 month Blackboard Term Deposit 2.40% 2.20% 0.20% 01 Dec
IMB Wisdom 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

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