Savings accounts vs term deposits

The Reserve Bank of Australia has brought interest rates down to historically low levels. The official cash rate is now set at 1.75 per cent and economists are predicting one more rate cut this year.

In this environment, savers need to be alert and prepared to shop around to get the best rate. Smart savers who are prepared to move their money can get returns over three per cent.

Online high interest savings accounts — or “at-call” deposits – may be a good option for many savers. Right now, many savings accounts have better returns than fixed term deposits.