Banks lure savers with great rates

Banks have rarely, if ever, been as keen to get hold of your spare cash as they are today. And this means they are prepared to pay over the odds for deposits.

It's a trend that gets largely overlooked in the monthly excitement about interest rates – which focuses overwhelmingly on the one-third of households with mortgages, who have not received the full value of recent Reserve Bank cuts. Savers, on the other hand, have experienced the opposite effect.

Despite official interest rates dropping to 3.5 per cent, one-year term deposits of $25,000 can still earn up to 5.3 per cent in interest.

Source: The Age