Westpac raises 3 and 5 month term deposit rates

In an increasingly competitive market for deposits from local customers, Westpac has raised its three and five month term deposit rates by 15 and 10 basis points, respectively. The move contrasts with the Reserve Bank's decision to leave the Official Cash Rate on hold at 2.5% on Thursday. Banks are having to compete very aggressively for local term deposits because the Reserve Bank is encouraging them to lengthen and localise their funding, and because foreign funding is expensive and difficult. Westpac's new three month term deposit rate is now 3.75%, and its new five month rate is 4.6%. See and compare all bank deposit rates up to 1 year  here.