CBA plays catch up with high yield account

Commonwealth Bank has begun nationwide marketing of its online, at-call savings account which will pay an interest rate of 5.4 per cent. CBA's launch follows closely on the heels of ANZ's Esanda, which began an extensive television advertising campaign two weeks ago for Esanda’s 5.55 per cent at-call account. CBA has begun to test market a 12-month term deposit product in Western Australia with an interest rate pf 6.1 per cent. Big banks have been forced to offer attractive rates on deposit due to a two percentage point decline in their combined share of bank deposits over the past 12 months. ING, HBOS, Citibank and HSBC now account for more than 10 per cent of the market. “That is a very aggressive move by CBA,” said Dennis Orrock, general manager of researcher InfoChoice. “The big banks have typically paid the lowest deposit rates.”

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