Deep cuts to deposit rates

A number of deposit-takers have cut their at-call deposit rates by more than 25 basis points since the Reserve Bank reduced the cash rate by 25 bps last month.

According to the comparison website Mozo, Citibank, Defence Bank, Bank of Queensland, Bank of Sydney, P&N Bank and RaboDirect are among the institutions that have made deeper cuts to savings rates over the past month.

G&C Mutual Bank slashed the ongoing bonus rate on its Bonus Saver account by 75 bps, to 2.5 per cent, and cut the base rate by the same amount to 0.5 per cent.

Defence Bank cut the introductory rate on its iSaver account by 60 bps, down to 3.2 per cent.

Band of Queensland, Bank of Sydney and P&N Bank cut introductory rates by 40 bps or more. P&N cut 50 bps off the ongoing rate of its SwiftSaver account.

RaboDirect cut 35 bps off its High Interest Saver Account, PremiumSaver and Notice Saver rates.

BankVic and Teachers Mutual Bank took 35 bps off their ongoing bonus rates.

Citibank cut 30 bps off the base rates of its Online Saver and Ultimate Saver accounts.

Mozo said the best at-call rates were the 3.91 per cent bonus rate on Rams' Saver account and ME Bank's introductory rate of 3.85 per cent.

In the term deposit market, Teachers Mutual Bank and ME Bank have the best one-year rate - at 3.3 per cent. ME Bank and BankVic have the best two-year rate - at 3.35 per cent.