AMP cut the base rate on its popular 'Saver' account by 20 basis points to 1.00% p.a. on Friday morning.
What this means is that its total rate is now also 20 basis points lower at 5.20% p.a.
To attain the new bonus rate of 4.20% p.a. over and above the standard rate, savers must deposit $1,000 a month.
This is a lower barrier to entry than many savings accounts, but the total rate now lags further behind market leaders.
This is distinct because savings account rates have largely remained steady, even though rates in term deposit land have been on the slide recently.
It's now getting harder and harder to find TD rates above 5.00% p.a. across any term.
Further below are some more products that changed this week.
Westpac subsidiaries cut rates
Subsidiaries such as St George, BankSA, and Bank of Melbourne made changes to term deposit rates earlier in the week. The changes were:
| Term | New % Rate p.a. (Change) |
|---|---|
| 3-4 months | 3.25% p.a. (-0.30) |
| 4-5 months | 3.35% p.a. (-0.25) |
| 5-6 months | 3.45% p.a. (-0.25) |
| 6-7 months | 3.6% p.a. (-0.20) |
| 7-8 months | 3.6% p.a. (-0.25) |
| 8-9 months | 3.8% p.a. (-0.10) |
| 9-10 months | 4.00% p.a. (-0.05) |
| 10-11 months | 4.00% p.a. (-0.05) |
| 11-12 months | 4.00% p.a. (-0.05) |
| 12 months | 4.00% p.a. (-0.30) |
| 12-24 months | 3.80% p.a. (-0.25) |
All have deposit sizes anywhere from $1,000 to $2 million, while interest is payable at the end of term.
Gateway and Community First wave goodbye to juicy rates
Two customer-owned banks, previously among the market leaders, waved goodbye to a few juicy rates this week:
- Community First removed its 5.10% p.a. 12-month TD special offer.
- Gateway Bank made a change, although small, by 5 basis points to its 6-month rate, now 5.00% p.a.
Macquarie Bank might just fall into the leaders' circle again
Australia's fifth-largest bank might just trip upwards to find itself among the market leaders if it's not careful.
Week after week it has made ever-so-slight hikes to term deposit rates, while others have come right off the boil.
This week it made 5 basis point increases to its 4- and 6-month products, now sitting at 4.90% p.a. apiece.
The minimum deposit is $5,000 while the maximum is $1 million, with interest paid at the end of term.
A rare bright spot from Move Bank
Move Bank is on the move once again, with a host of rates being cut. There was one bright spot though, with the 7-month rate being hiked by 10 basis points to 5.05% p.a.
| Term | New % Rate p.a. (Change) |
|---|---|
| 4 Months | 4.85% (-0.05) |
| 5 Months | 4.90% (-0.05) |
| 6 Months | 4.95% (-0.05) |
| 7 Months | 5.05% (+0.10) |
| 8 Months | 4.90% (-0.05) |
| 9 Months | 4.85% (-0.20) |
| 10 Months | 4.80% (-0.20) |
| 11 Months | 5.00% (-0.10) |
| 12 Months | 4.80% (-0.20) |
| 13 Months | 4.75% (-0.05) |
| 15 Months | 4.40% (-0.30) |
| 24 Months | 4.40% (-0.30) |
Interest is payable on terms 12-months and shorter at maturity, while the 13-, 15- and 24-month terms have interest paid annually.
The minimum deposit is $5,000 while the maximum is $2 million.
Other moves
- BCU cuts 3-month to 3-year rates by as much as 70 basis points.
- P&N largely makes cuts by up to 70 basis points but hikes its 5-month rate by 5bps to 4.90% p.a.
- The Mutual cuts 6- and 12-month rates by 20 basis points.
Photo by Melissa Walker Horn on Unsplash
