High deposit rates set to come down

Aggressive deposit competition may be coming to an end. NAB chief executive Cameron Clyne said the intense competition for retail deposits may be abating. Clyne said: “It is a zero sum game. We are all fighting for the same dollar.”

NAB’s online subsidiary, UBank, was one of a number of groups offering high-yield online accounts that did not increase their deposit rates after the Reserve Bank’s April cash rate increase. Clyne said: “We have a competitive offer. Deposit growth was above system for the half. That is a good sign.”

Source: Banking Day