Savers miss out on rate rise
Although financial institutions were quick to pass on the November interest rate rise to loans, rates on basic savings accounts have not altered, according to Infochoice. Banks have instead opted to lift rates on term deposit and cash management accounts to varying degrees. The major banks lifted interest rates for 90-day term deposits by an average of 0.16 per cent. In comparison, the full 0.25 per cent increase was applied to standard variable home loan rates and about 0.3 per cent on fixed-rate loans. However, interest rates on basic transaction accounts remain unaltered. On higher-interest online accounts most institutions have also left rates unchanged. Only AMP, St George and Members Equity have lifted these rates and only Members Equity passed on the full 0.25 per cent rise.