Punch-drunk ANZ throws a bone to depositors
As the public backlash intensified yesterday against ANZ's controversial mortgage repricing, the bank last night promised to give something back to part of its customer base.In a move aimed at pacifying customers left fuming after the decision not to transmit the full RBA official rate cut to home borrowers, ANZ's retail banking boss Mark Hand pledged to fatten the return on one of the bank's term deposit offers.From this Friday the bank will increase the rate on its 11-month term deposit by 80 basis points to 2.35 per cent."We recognise it has not been an easy environment for customers who are trying hard to save their money and get a decent return," Hand said."In making this decision we have sought to get the balance right to provide a highly competitive rate for savers over an eleven-month term on the back of yesterday's announcement to cut home loan rates."We're making an effort to provide an attractive option for savers and retirees who rely on interest income."While Hand described the deposit offer as "competitive", financial products research firm Canstar lists at least 100 term accounts over 10, 11 and 12 months that are offering superior rates to the repriced ANZ account.Qudos Bank currently offers the best 11-month term deposit offer in Australia that is priced at 2.7 per cent.Apart from its special rate for holding customers' cash for 11 months, ANZ's general pricing on term deposits ranks in the bottom quartile of the banking market.