Bendigo and Adelaide Bank has managed its margin in a low interest rate environment "very well" according to group managing director Mike Hirst.In the year to 30 June 26, BEN's deposit level grew 7.3 per cent, well up from 5.5 per cent system growth. And Hirst said this was done without paying over the odds for deposits."With the latest change to interest rates we saw some of the other banks increase some of their longer term deposit rates, and it will be interesting to see how that plays out," Hirst said at the bank's annual profit announcement for 2015/16 yesterday. "Traditionally there hasn't been a lot of money going into deposits beyond 12 months, but we haven't been in these low [interest rate] environments before."As returns fall for, particularly, self-funded retirees it will be an open question as to whether or not they're prepared to lock their money away for a longer term. Regardless, we have got a lot of room to move in that space. "We've got plenty of lines available in wholesale markets should the competition become irrational on pricing. We've seen that before, during the GFC."He said the strength of Bendigo's network "came through very clearly" when they were able to move their deposit based funding from 50 per cent up to 70 per cent.