Lazy depositors can get over 7 per cent
RaboDirect last week launched a five-year term deposit with an interest rate of 7.15 per cent a year. The bank says it's the best five-year term rate in the market. It has a one-year term deposit that pays 6.6 per cent. The five-year and one-year term deposits are also available to self-managed superannuation funds and business customers.
Choice says consumers are giving the major banks at least $7.3 billion dollars a year by keeping $153 billion dollars of their cash in low- or no-interest transaction accounts. Choice says the banks then lend out this cash at much higher rates while collecting hundreds of millions of dollars from customers in fees and charges.
Source: The Age