ANZ seemed to cut rates on anything with a pulse - terms anywhere from two months to five years were affected.
Luckily the top rate for five years was saved from a haircut, with interest paid at maturity; other payment terms for the longest term were cut however.
The new highest rate available at the bank is now 4.75% p.a. which is for an eight-month term; it too was cut by 5 basis points on Tuesday morning.
This adds to NAB's term deposit rate cuts last week, as well as Westpac and CommBank a couple of weeks ago.
Fixed interest rates offered by banks are largely derivative of Australian Treasury yields; interestingly, the latest cuts are at odds with the yields, where the 3-year rate is now 3.90% as of 7 October, up from 3.40% in mid-September.
ANZ's economics team has maintained its call for a February 2025 RBA rate cut, but NAB's team has brought theirs forward from May to February.
Westpac, ANZ, and NAB now all forecast the first cut to happen in February; CommBank is the outlier in forecasting a December 2024 reduction.
Below is a range of noteworthy cuts from ANZ made on Tuesday morning.
Interest is paid at maturity for terms less than 12 months, or annually for terms longer than 12 months.
The minimum deposit size is $5,000 while the maximum for the below rates is $2 million.
ANZ term deposit rate reductions - 8 October
| Term | New Rate % p.a. | Change |
|---|---|---|
| 3 Months | 3.15% | -0.10 |
| 9 Months | 3.80% | -0.10 |
| 12 Months | 4.20% | -0.30 |
| 24 Months | 3.80% | -0.20 |
| 36 Months | 3.10% | -0.90 |
| 48 Months | 3.10% | -0.90 |
Photo by Donaldytong on Wikimedia Commons
