HSBC takes lead in deposit market

Sixty-five per cent of households do not have a mortgage, and thus stand to benefit from a higher interest rate on deposits. At least four banks, HSBC, BankWest, Suncorp and ING Direct, were quick to announce an increase in interest rates on deposits. HSBC increased the rate on its online Serious Saver account by 0.30 percentage points to 6.20 per cent, the highest ongoing rate available. BankWest lifted the introductory rate on its TeleNet Saver account to 6.60 per cent for the first 12 months, and six per cent after that.