Baby boomers love term deposits
Term deposits make up about half of the banks' total deposits. In recent years they have gone from being priced at a discount to the RBA's cash rate pre-crisis to a premium.
Savers and investors, particularly baby boomers, have pushed money into term deposits and total money invested in TDs is up 44 per cent since January 2009.
Other types of deposits are up 13.5 per cent according to Roy Morgan.
Shane Fitzgerald, a fund manager at Monash Investors, said he expected deposit competition would ease.
Source: The Australian