High-yield savings products lure depositors
While high rates are hurting borrowers those with cash in the bank can get returns on or close to the official cash rate with an at call account or even higher if locking it away in a term deposit. BankWest's Telenet Saver online account gives 7.75 per cent for the first twelve months which then reverts to 7.25 per cent while a similar account with RaboPlus pays 7.3 per cent for funds at call. Commonwealth Bank is paying 8.1 per cent for a six month term deposit between $10,000 and $500,000 and Macquarie will pay over 8 per cent for some deposits depending on amount and term. Denis Orrock, general manager of InfoChoice, says that competition for retail funds has increased as banks seek to ease the global funding pressures. “Term deposits are sexy again and the major banks are competing strongly in that space. Their funding requirements mean they need to lure deposits for as long as possible,” he said.
Source: The Australian Financial Review