Savers – are you getting the best deal?

Savers can look forward to the continuation of intense competition for deposits for some time but they need to keep an eye on how their financial institution is adjusting rates and be prepared to switch to another if they are not getting a good deal. In April, when the Reserve Bank put up the official cash rate by 25 basis points, UBank, ING Direct, RaboPlus (now RaboDirect), Bankwest and Citibank left their rates unchanged or passed on only part of the increase.

Last month. ING Direct withdrew its introductory rate of 5.85 per cent on its Savings Maximiser products and is now offering a base rate of 4.9 per cent. Citibank left the base rate on its Online Saver product unchanged at 4.75 per cent after the change to official rates but put the six-month introductory rate up by 14 basis points to 6.15 per cent.

National Australia Bank's online offshoot, UBank, has lifted the base rate on its USaver account to 6.01 per cent in the last week and has increased the bonus rate for regular deposits from 6.21 per cent to 6.42 per cent.

Source: Sydney Morning Herald