“While terms deposit rates have started to fall,there’s still time to lock in a good rate,” says Rachel Wastell,spokesperson for rate comparison site Mozo.
Economists do not expect the first cut to the cash rate to come until late this year,however it is not the only factor determining the rates banks pay savers. These include whether the bank needs to raise more cash from savers,and a particular bank’s competitive positioning.
That means interest rates on deposits do not automatically follow the cash rate. Some banks offer higher term-deposit rates to their existing customers.
Commonwealth Bank pays 4.8 per cent on its one-year term deposit that is available to existing customers only. The standard one-year term deposit pays 4.25 per cent,figures from Mozo show.
Rates on offer for term deposits and bonus saver can differ,depending on the size of the deposit. There are also caps on the amount of money that can be deposited. Mozo applies a balance of $25,000 when quoting interest rates on term deposits.
NAB and ANZ pay 4.7 per cent and Westpac’s standard 12-month term deposit pays 4.25 per cent. Westpac has two “special offers” available to existing customers – one of which pays 4.8 per cent for 11 months.