Banks hit and run on savings

18/01/2010

Banks and credit unions are hitting the market with extraordinary deposit deals, then withdrawing them quickly.

Savvy savers are getting their cash ready to move quickly in order to take advantage of the unprecedented offers that come and go at a moment’s notice.

With the high relative interest rates now on offer, an investor can double their money in about ten years, without the worry and stress that comes with market volatility.

“There has been huge growth in term deposits as an investment since the onset of the global financial crisis (in October 2008), then it tapered off a bit,” says John Lechte, director of term deposit brokers, F.I.I.G.

“But in the last few months they have taken off again. Term deposits have just gone through the roof since about September.”

Westpac dropped its unsustainable 6.80 per cent rate for 12 month terms back to less than six per cent just after Christmas after offering it for just one month.

ANZ raised its three-year term deposit rate on December 2 by 1.00 percent to 7.00 per cent, then dropped it back again on Christmas Eve.

“Banks are engaging in a hit and run campaign with term deposits,” says Andrew Murray, Director of Curve Securities, specialists in fixed interest investments.

Source: Sunday Mail

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