Term deposit rates rise on back of property uncertainty

Several institutions have made recent changes to their term deposit rates, including Gateway Bank and Teachers Mutual Bank, as they race to become a market leader in a time of uncertain conditions.

Community-owned Gateway Bank has increased the interest on its 9 and 12-month term deposits for balances above $10,000. Rates on 9-month term deposits grew by 50 basis points to 2.65%, while rates on 12-month term deposits increased by 44 basis points to 2.85%.

Gateway Bank CEO, Paul Thomas, said that Gateway’s term deposit changes come as a response to Aussie homeowners facing the uncertainty of the property market baselining after years of growth.

“Encouraging financial literacy and supporting people reach financial freedom has always been a focus for us at Gateway and we hope the offers will urge Australians to think about investing in and saving for their future.”

Teachers Mutual Bank has also increased the interest rate on its 12-month term deposit this week. This rate of 3.00% is available to members seeking to deposit between $5000 and $499,999 with any Teachers Mutual Bank Limited brand, including Firefighters Mutual Bank, Teachers Mutual Bank, and UniBank.

Other financial institutions that have made recent changes to their term deposit rates include:

• Westpac – added a limited special rate of 2.45% on 5-month term deposits for amounts between $5000 and $5 million
• Macquarie Bank – increased their 1 and 2-month term deposit rates by 15 basis points but reduced most of their other term deposit rates by 2 basis points
• Bankstown City Unity Bank – increased their 9-month rate by 45 basis points

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