Savings rates tipped to keep falling
Pricing across a raft of savings accounts is falling. In some cases, rates for term deposits and online savings accounts have fallen by 46 basis points in recent months, the equivalent to a nearly two-notch cut in official cash rates.
Latest figures show the banking sector generated $8 billion more in deposits during August than was required to lend out. According to calculations by the brokerage Deutsche Bank, the lower rates paid to savers will help lift the revenue of big banks by between 3 and 4 per cent.
Deutsche Bank calculations show that over recent months banks have reduced term deposit rates by 22 basis points on five-month term deposits and by up to 46 basis points on one-year term deposits. Online savings accounts have also cut rates by 25 basis points.
Source: Blacktown Sun