At-call rates soften
The heat has gone out of the at-call savings account market, with a number of institutions reducing introductory rates over the past month. But there is still plenty of action in the term deposit market, where rates are still moving up. Virgin Money set the pace for the at-call market when it launched an online savings account last July with an introductory rate of 6.75 per cent for four months. That rate has dropped back to 6.51 per cent. The base rate remains unchanged at 5.35 per cent.
Virgin’s introductory rate now matches UBank’s offer of 6.51 per cent for customers who make regular monthly savings. The UBank base rate is 6.01 per cent. RaboDirect relaunched its brand last May and set a 6.4 per cent introductory rate for its online savings account. That rate how now dropped back 6.1 per cent (if the account holder deposits a minimum of $200 a month) on a base rate of 4.75 per cent.
Citibank has maintained an introductory rate of 6.45 per cent (with a base rate of 5.25 per cent). Credit Union Australia was running a four-month introductory rate of 6.3 per cent in the fourth quarter of last year but is not currently offering any introductory rate. Its base rate is 5.15 per cent.
Hunter United has maintained a base rate of 6.37 per cent, which it introduced in August. ING Direct has a four-month introductory rate of 6.35 per cent and a base rate of five per cent.
Source: Banking Day