Deposit rates are historically high

02/12/2009

The big four banks have historically high, and probably unsustainable, market leading rates on at-call and term deposits. Yesterday Westpac made a grab for one-year cash by raising its one-year term deposit rate by 2.3 per cent from 4.5 per cent to 6.8 per cent.

The cash-strapped second tier dominated the one-year yield market until yesterday, with the best rate in the retail market, 6.25 per cent, belonging to Rural Bank. AMP offered 6.06 per cent, with Suncorp and Citi making up the top five 12-month term rates with a retail offering of 6.0 per cent.

Commonwealth have an offer of 7 per cent for three-year terms.

In the at-call online saver market as listed by Infochoice, NAB continues to lead with UBank USaver’s 5.56 per cent yesterday.

The four most popular product searches at Infochoice at present all related to online savings accounts. The four top searches were, in order, UBank Usaver (from National Australia Bank), ANZ Online Saver, NAB iSaver and the RaboPlus Premium Saver.

Source: The Sheet

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