NAB, Judo, Suncorp, AMP & others cut deposit rates

author-avatar By on June 26, 2020
NAB, Judo, Suncorp, AMP & others cut deposit rates

Photo by Sandra Lemming on Unsplash

A number of major banks have cut term deposit rates by up to 45 basis points in the past seven days, including the likes of NAB, Suncorp, AMP and Judo Bank.

This follows two other large banks - ING, as well as Westpac and its subsidiaries St. George, BankSA and Bank of Melbourne - cutting deposit rates by as much as 25 basis points last week

Smaller banks, such as MyState Bank, Credit Union SA, Qudos Bank and ME Bank, also raised and lowered various rates in the past week as well. 

The term deposit rate movements come despite no change to the Reserve Bank (RBA) cash rate, with the last cash rate cut occurring in March

After inflation is taken into account, most term deposits currently offer little to no returns, with the average interest rate across all terms - based on a quick market comparison - around 1.10% p.a. That's half the rate of inflation. 

Despite this, the latest APRA (Australian Prudential Regulation Authority) banking statistics show a notable increase in deposits from households during COVID-19.

Major banks' deposit balances surged by 4% in March and another 2% in April, well above the usual growth rate of 0.3%. 

Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for a six-month term.

Provider
Advertised
interest rate
Interest
frequency
 
1.33% Annually,
end of term
Go to site
Term Deposit
0.55% End of term Go to site
1.25% Monthly, end of term More details
1.21% End of term More details
1.20% End of term More details

*Rates correct as at 11 September 2020. Rates based on a $50,000 deposit for 6 months.

NAB term deposit rate changes

NAB cut various term deposit rates by as much as 15 basis points on Wednesday, including both regular term deposits and its Farm Management deposits. 

These changes appear to apply to terms of one-year or less. 

Of the term deposit rates affected, the highest is only 1% p.a.

The previous big four bank to cut term deposit rates was ANZ in early June

Compare high-interest term deposits

Judo term deposit rate changes

Neobank Judo Bank, which consistently offers term deposits that rank among Savings.com.au's list of highest term deposit rates, made some major rate changes this week.

Yesterday, it cut various rates by as much as 45 basis points, for terms ranging from two years to five years. 

Other changes were as small as 20 basis points. 

That 45 basis point cut applies to three-year terms, down from 2.05% p.a. to 1.60% p.a.

Judo's current term deposit rates can be seen below. 

90-day term

180 day

270 day

1yr

2yr

3yr

4yr

5yr

Judo - Maturity

1.35%

1.45%

1.45%

1.50%

1.75%

1.60%

1.70%

1.95%

Judo - Annually

1.35%

1.45%

1.45%

1.50%

1.75%

1.60%

1.70%

1.95%

Judo - Monthly

1.35%

1.45%

1.45%

1.50%

1.75%

1.60%

1.70%

1.95%

Source: Judo

Suncorp term deposit rate changes

Yesterday, Suncorp Bank both increased and decreased term deposit rates. 

Some rates were decreased by as much as 30 basis points, while others were increased by as much as 10. 

These changes apply to pretty much all terms ranging from three months to five years: 

All of the rates affected by these changes now sit below 1.00% p.a. 

AMP term deposit rate changes

AMP yesterday made some major term deposit changes, cutting a variety of rates by up to 40 basis points. 

This large change applies to shorter term deposits (three, four and five-months), while other changes included cuts of between 10 and 20 basis points to terms up to five years. 

AMP's highest rate among the terms affected is now 1.20% p.a. 

Other term deposit rate changes:

  • MyState bank: Cut rates by up to 45 basis points, raised others up to 40 
  • ME: Cut rates by up to 20 basis points, raised others by 5 
  • RACQ Bank: Cut rates by up to 25 basis points
  • Qudos Bank: Cut rates by up to 10 basis points 
  • Credit Union SA: Cut rates by up to 35 basis points 

Keep up with the latest term deposit news and rate changes here


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author-avatar
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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