Commonwealth Bank's move to increase one, two and three year term deposit interest rates six weeks ago has proven popular with savers.
Tens of thousands of customers have taken advantage of the offer, locking in attractive interest rates on their savings. Demand has been overwhelming with around $1.5 billion of deposits per week.
In response to changes in local and international funding markets, regulatory requirements and competitive challenges, and as part of our ongoing efforts to balance the interests of our customers and shareholders, Commonwealth Bank has made changes to interest rates for some new term deposits, effective from 28 September 2016.
Commonwealth Bank's three-year term deposit rate remains unchanged at 3.20%pa. The one-year rate reduces by 0.50%pa and two-year rate by 0.55%pa.
Clive van Horen, Executive General Manager, Retail Products and Strategy, said while some term deposit rates are decreasing, Commonwealth Bank continues to provide value for savers.
“Commonwealth Bank is committed to offering competitive interest rates on our deposit products.
“Our term deposit interest rates are delivering value to tens of thousands of new and existing savers who will continue to enjoy these interest rates for the agreed fixed term,” Mr van Horen said.
“Interest rates offered by Commonwealth Bank reflect a number of factors including local and international funding markets, regulatory requirements and competitive conditions and we frequently review our product offering to ensure they reflect market conditions.
“As we have previously said, we seek to strike a balance between our customers and shareholders and we continue to provide an attractive three year term deposit rate of 3.20 per cent per annum, ensuring we’re providing great value to deposit customers in a record low interest rate environment,” Mr van Horen said.
A term deposit guarantees an interest rate for an agreed fixed term. It provides the security of knowing that interest income is protected from fluctuations in investment markets.
Existing customers who have a term deposit rate locked in for their set period will not be affected by these rate changes.
Customers who need immediate and flexible access to funds may like to consider other savings accounts which may be more suitable for their needs.
More information on our term deposits including our current rates is available online at www.commbank.com.au/termdeposits or by visiting a CommBank Branch.