ANZ closes ranks with majors after lifting term deposit rates
- ANZ lifted Advance Notice Term Deposit rates by up to 10 basis points, taking its top offer to 5.30% p.a.
- The increase puts ANZ on par with CommBank, NAB and Westpac, leaving all four major banks offering top rates of 5.30% p.a.
- The latest savings rate rises come ahead of the RBA's September meeting, with major banks and markets expecting a 25-basis-point cash rate hike.
ANZ has erased the last remaining gap between the big four banks, lifting rates across its term deposit products and taking its top offer to 5.30% p.a.
The bank increased a range of term deposit rates by up to 10 basis points, with changes applying across terms from seven days to two years.
ANZ's top rate is now available on selected 12 to 24-month Advance Notice Term Deposits with interest paid annually, putting the bank on equal footing with Commonwealth Bank, NAB and Westpac in the battle for savers' cash.
| Term | New rate (% change) | Interest paid |
|---|---|---|
| 7 days | 1.50% p.a. (+0.10) | End of term |
| 1 month | 1.50% p.a. (+0.10) | End of term |
| 2 months | 1.75% p.a. (+0.10) | End of term |
| 9 months | 3.75% p.a. (+0.10) | End of term |
| 10 months | 3.80% p.a. (+0.10) | End of term |
| 11 months | 3.85% p.a. (+0.10) | End of term |
| 12-24 months | 5.30% p.a. (+0.10) | Annually |
All four major banks have raised their best term deposit offers over the past week as markets and economists brace for the possibility of another Reserve Bank rate hike.
Big banks move higher
ANZ's increase follows similar moves from NAB and Westpac earlier this week.
NAB raised its top term deposit rate to 5.30% p.a. on Monday before Westpac matched the offer hours later, ending CommBank's brief stint as the sole holder of the highest term deposit rate among the major banks.
Read more: Big four banks play tag on top term deposit rates
CommBank had lifted the rate on its 12-month special offer term deposit to 5.30% p.a. only days earlier, giving it a short-lived advantage over its rivals.
The result is that all four major banks are now offering top rates at or around 5.30% p.a., a notable turnaround from earlier in the year when banks were generally trimming savings offers as expectations grew that official interest rates had peaked.
See also: Compare big four term deposit rates
Eyes on the RBA
The latest round of term deposit increases comes just days before the RBA's September meeting, where markets and major bank economists are increasingly expecting another rate hike.
Australia's unemployment rate ticked up to 4.6% in August, its highest level since the pandemic, but still within the range RBA Governor Michele Bullock recently suggested may be needed to cool the labour market and help bring inflation back under control.
At the same time, inflation remains stubbornly above target despite showing signs of easing, adding to the case for policymakers to keep monetary conditions tight.
Combined with recent comments from Ms Bullock that highlighted ongoing inflation risks, the latest jobs and inflation data have done little to dampen expectations of a cash rate increase at next week's meeting.
All four major banks now expect the RBA to lift the cash rate by 25 basis points, while financial markets are also heavily pricing in a move.
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Bank Term Deposit Interest Rate Interest Frequency Term Automatic Rollover Maturity Alert Early Withdrawal Available Minimum Deposit Maximum Deposit Notice Period to Withdraw Account Keeping Fee Online Application Joint Application Tags Features Link Compare Promoted Product Disclosure
