Volt Bank's 1.65 per cent savings rate, better or “beta” than the rest?
Introductory rates, bonus rates and term deposit rates all fell in June, with comparison sites reporting that a steady cash rate over the past three months has not slowed the cutting.
Macquarie Bank has cut its market-leading introductory savings rate by 39 basis points to 2.26 per cent. After four months the rate drops to 1.35 per cent.
Macquarie’s was not the biggest at-call savings rate cut last month. Westpac’s Rams dropped the rate on its ongoing bonus rate account by 45 bps to 1.20 per cent.
Despite the hefty cut, Macquarie still has the best intro rate in the market. Close behind is AMP, which is offering a six-month introductory rate of 2.0 per cent on its Saver Account.
The best ongoing savings rate is 1.65 per cent, which Volt Bank is offering. The product is in “beta”, which means it is available only to a small group.
The top ongoing bonus rate is 1.85 per cent, which is being offered by three banks - 86 400, Bank of Queensland and Up. If depositors do not meet the deposit or transaction requirements for these accounts the base rates are 25 bps for 86 400, 20 bps for BOQ and 10 bps for Up.
Among the big banks, ANZ cut 15 bps off the bonus rate of its Progress Saver account, which is now offering a bonus rate of 85 bps.
ANZ also cut 80 bps off the three-month intro rate of its Online Saver account, which is now 80 bps.
Westpac cut the bonus rate on its Life account by 5 bps to 1 per cent and cut the five-month introductory rate of its eSaver account by 10 bps to 95 bps.
In the term deposit market, comparison site Mozo reported that 64 of the 82 providers in its database cut TD rates in June. None of the big banks have a TD rate above 1 per cent, after all four cut across all offered terms last month.
Most of the “specials” are for seven or eight months, with ANZ offering 1 per cent for eight months, Commonwealth Bank 95 bs for eight months, NAB 80 bps for seven and 11 months and Westpac 70 bps for eight and 10 months.
The current term deposit rate leaders are Qudos Bank, offering 1.55 per cent for three, 11 and 12 months; Move Bank, offering 1.55 per cent for seven months; and Judo Bank offering rates between 1.6 per cent and 1.75 per cent for terms between two and five years.
Despite the ongoing rate cutting, the latest APRA baking statistics show that household deposits grew by 4.1 per cent over the three months to the end of May.