Savers must shop around as deposit war cools

Official data shows an easing in the “war for deposits”. Savers are being forced to shop around for good rates on their deposits because banks and other financial institutions are cutting the premium they are prepared to pay depositors.

In September 2012 banks were paying 0.9 percentage points above the RBA’s official cash rate for term deposits; this gap has since narrowed to 0.6 percentage points.

“The pressure is not as intense as it was say 12 or 18 months ago,” the chief executive of online bank ING Direct, Vaughn Richtor, said.

Source: The Age