According to InfoChoice's database, 10 providers adjusted their term deposit rates in March, with an overall upward trend in average interest rates for short to mid-term deposits.
The most notable changes occurred across 3-month and 6-month terms, with rates increasing by an average of 33 basis points.
Additionally, 9-month terms experienced an increase of 15 basis points.
In contrast, there is a decline in average interest rates across longer-term deposits.
There were reductions ranging from -0.06% to -0.40% for anything 12 months or longer.
The most significant decreases were observed in the 4-year and 5-year space, where average rates dropped by 40 basis points.
With banks pushing savers to the shorter end of the spectrum, here are some of the more notable movements in the first week of April.
Despite the decreases, with annualised inflation at 3.4%, savers are enjoying healthier margins over the rise in the cost of living than six to 12 months ago.
Move Bank moves rates
Brisbane-based Move boosted rates on 3, 5, 6, and 9 month term deposit rates this week.
- 3 Months: Up 10 basis points to 4.85% p.a.
- 5 Months: Up 30 basis points to 5.10% p.a.
- 6 Months: Up 15 basis points to 5.00% p.a.
- 9 Months: Up 20 basis points to 5.05% p.a.
All term deposit products have a minimum deposit of $5,000, with a maximum of $2 million; interest is payable at the end of term.
Macquarie Bank tinkers around the edges again
Australia's fifth-largest bank is back adjusting its term deposit rates, after taking a breather last week.
This time it cut 3 month and 12 month rates by 5 basis points, to 4.80% p.a. and 4.65% p.a. respectively.
The minimum deposit is $5,000 - the maximum is $1m - and interest is payable at the end of term.
Teachers Mutual prefers the swinging axe approach
Teachers Mutual Bank and its subsidiary UniBank cut rates in a big way this week.
The cuts of up to 85 basis points applied to 9, 11, and 12 month terms.
- 9 Months: 85 basis point cut to 4.05% p.a.
- 11 Months: 85 basis point cut to 4.85% p.a.
- 12 Months: 25 basis point cut to 4.75% p.a.
The minimum deposit is $1,000 while the maximum is $500,000.
Notably, Teachers Mutual appears to have harmonised rates across interest payment terms; for example, rates are the same whether a customer opts for an annual or monthly interest payment.
Teachers Mutual and its subsidiaries have also withdrawn the 5.50% p.a. Target Saver savings account product for new customers.
Bank of Sydney applies a taper fade
Bank of Sydney cut rates on 9 and 12 month term deposits by 10 basis points this week, to 5.00% p.a. and 4.90% p.a. respectively.
The minimum deposit is $1,000 while the maximum is $1 million, with interest payable at the end of term.
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