The halcyon days of major banks offering term deposit rates north of 5% p.a. seem to be over.
Westpac is thus far the only one not to have cut in this latest round, but we expect, like lemmings off a cliff, for this to happen soon.
On Monday morning NAB and ANZ cut a large swathe of rates. The key details for each bank are below.
See Also: CommBank's latest term deposit cuts
NAB term deposit changes
| Term | % Rate p.a. (Change) | Interest payable |
| 3 Months | 3.25% (-0.25) | End of term |
| 6 Months | 3.60% (-0.20) | End of term |
| 12 Months | 4.50% (-0.40) | End of term |
| 3 Years | 3.30% (-0.50) | Annually |
| 4 Years | 3.30% (-0.50) | Annually |
| 5 Years | 3.30% (-0.50) | Annually |
Cuts also applied to 4- 5- 7- and 13-month terms.
There was a bright spot, however: The 8-month rate was boosted by 80 basis points to 4.80% p.a.
This appears to be the most competitive rate at NAB.
Slight reductions in the rate are expected if one opts for a more frequent interest payment (bi-annually, quarterly, or monthly).
The minimum deposit on these is $5,000 while the maximum is $2 million.
ANZ term deposit changes
| Term | % Rate p.a. (Change) | Interest payable |
| 3 Months | 3.25% (-0.25) | End of term |
| 6 Months | 3.50% (-0.40) | End of term |
| 9 Months | 3.90% (-0.10) | End of term |
| 12 Months | 4.50% (-4.50) | End of term |
Terms of 4- 5- 7- 8- 10- and 11-months were also changed, mostly in a downward fashion.
However as you might expect the 8-month term was boosted by 75 basis points to 4.80% p.a.
Is this copying homework, or collusion between two of the smaller big four banks?
ANZ's cuts mostly applied to the shorter end of the spectrum, leaving longer terms untouched for now.
The minimum deposit on these is $5,000 and the maximum is $2 million.
Which big four bank offers the highest term deposit rates?
This depends on which term you're after, and if you're looking to invest at a time that a major bank has a 'special offer' rate out there.
Here's a simple breakdown of the big bank market leaders across a few terms:
- 3 Months: Westpac, 3.50% p.a.
- 6 Months: Westpac, 3.75% p.a.
- 9 Months: CBA, 4.80% p.a. - special offer.
- 12 Months: ANZ & NAB, 4.50% p.a.
These are correct at the time of writing, and note that Westpac is yet to change TD rates in this latest run.
These are still off the pace of the market leaders, with rates north of 5.00% p.a. readily on-offer especially for terms 12 months or shorter.
Photo by jcomp on Freepik
