08 Aug – 12 Aug 2016

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There were myriad changes made to deposit rates this week as institutions implemented their strategies to cope with an environment in which interest rates on loans for maturities ranging from overnight to 10 years are close to zero. Among the major banks, ANZ cut its standard term deposit rates across the board by 25bps. It did raise its 31-day advance notice 1 year term deposit rate after the RBA rate cut to 3.00% and its 2 year advance notice term deposit by 75bps to 3.20%. Westpac went for a rise in yields with 1 year and 3 year rates raised by 55bps and the 2 year yield increased by 45bps. CBA have announced that it will increase its 1 year term deposit on 19 August to 3.00% – some 17 days after the RBA cut – and NAB increased its 8 month blackboard special by 85bps to 2.90% with interest paid at maturity.

While most of the changes were in the form rate reductions, there were additional yield increases and some of them were quite substantial. Among the smaller institutions both Bank of Melbourne and St. George Bank imitated Westpac’s rate changes, (which is not a surprise seeing both are owned by Westpac).

Most of the increases were for terms of 1 year and greater. The Capricorn raised the rate on its 1 year deposit by 35bps. People’s Choice increased 1 year rates by 10bps, 2 year rates by 20bps and 3 year rates by 30bps. Newcastle Permanent raised 3 month rates by 10bps, 1 year rates by 50bps, 2 year rates by 40bps and 3 year rates by 40bps. Macquarie Bank raised its rate 9 month rate by 35bps and its 1 year rate by 10bps.

Perhaps the most unusual changes were made by BoQ Specialist. While it made 15bps to 25bps reductions of on some of its terms under 1 year, it raised rates on 1, 2 and 3 year terms by 30bps, 63bps and 72 bps respectively. It is not surprising its sibling, Bank of Queensland, did something similar and most of their deposit rates are now identical.

There were a host other modest rate reductions made by the other deposit-taking institutions in the YieldReport survey. See our tables below for any other changes, as well as all the latest rates and terms which are available.

term-deposits-15aug

TERM DEPOSITS 250K TO $1M+

Institution1 m
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2 m
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3 m
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4 m
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5 m
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6 m
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9 m
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1
Year
2
Year
3
Year
4
Year
5
Year
ANZ1.401.401.651.401.401.701.401.802.102.152.202.40
CBA1.902.002.352.002.002.002.002.452.602.702.802.90
NAB1.752.002.252.002.002.352.052.402.652.702.753.00
Westpac2.002.002.352.002.002.402.003.003.103.202.703.10
ADCU2.602.602.602.702.702.752.90
AMP Bank2.052.152.752.452.452.852.752.802.552.552.752.80
Arab Bank Australia2.002.253.102.902.902.902.852.852.902.953.003.10
Bank of Melbourne2.002.002.402.002.002.452.003.003.103.202.803.10
Bank Australia2.552.552.552.552.552.752.852.95
BankSA2.002.002.402.002.002.452.002.452.702.752.803.10
Bank of Baroda Australia2.752.752.802.802.802.952.953.053.053.103.103.25
Bankwest1.751.753.001.751.752.701.753.002.752.752.802.80
Bank of Sydney1.901.902.102.151.802.202.552.40
BankVic2.201.901.902.152.002.252.502.602.652.90
Beyond Bank2.402.602.502.602.602.752.902.90
Bendigo Bank1.251.902.301.901.652.452.452.652.752.903.003.10
BOQ1.751.752.62.002.002.702.503.053.153.252.65
Citibank0.730.830.921.171.161.161.421.431.121.050.950.87
CUA1.501.952.152.502.352.702.852.702.802.80
Defence Bank2.402.352.452.452.75
Delphi Bank1.902.302.352.302.302.552.32.572.722.762.863.06
Greater Building Society1.751.752.702.452.652.752.502.502.902.902.902.90
Heritage Bank2.402.502.703.002.602.802.652.852.852.902.952.95
Horizon Credit Union1.901.902.102.102.202.302.602.702.80
HSBC1.651.752.001.751.752.051.752.052.152.252.252.25
IMB2.352.402.402.602.752.803.00
ING DIRECT2.102.302.602.403.052.70
Investec Bank Australia1.752.602.702.503.053.153.252.572.61
Macquarie Bank1.852.552.502.602.852.602.402.402.40
ME (formerly ME Bank)2.302.302.402.502.502.902.902.902.903.003.003.00
Newcastle Permanent2.002.002.802.002.002.502.503.003.103.202.903.10
People's Choice Cr Union2.202.602.703.002.802.803.003.203.203.053.10
Police Bank2.652.702.85
P&N Bank2.352.852.652.502.752.552.903.003.103.103.10
QT Mutual Bank2.252.252.752.252.252.852.852.852.952.953.053.15
Rabobank Australia1.001.502.201.901.602.302.252.252.602.803.003.20
RaboDirect2.002.402.652.652.702.903.003.053.30
Rural Bank Limited1.751.752.651.751.752.651.752.752.802.802.803.10
St.George Bank - Ex VIC2.002.002.402.002.002.452.003.003.103.202.803.10
Suncorp Bank1.751.852.252.052.152.702.453.003.102.602.652.70
Teachers Mutual Bank2.552.552.652.652.652.802.852.85
The Capricornian2.202.302.85
UBank2.203.012.902.912.902.86
Victoria Tchrs Mtual Bank1.801.802.802.802.852.852.952.952.953.003.10
*For comparison purposes rates to 1y are paid at maturity. Rates longer than 1 year are paid annually. Rates are checked each day on company websites and rate sheets. Arrows show rates that have changed in the week.