Term deposit rates fall as savings rise

Since the start of last week, 29 banks have cut their term deposit rates bringing the average two-year deposit rate down 40 basis points to 5.69 per cent.

Three-year deposits have dropped an average of 47 basis points to 5.77 per cent on average in the same period.

Australian Prudential Regulation Authority data showed that banks at the end of June held just under $500 billion of cash deposits from households, up $34 billion, or 7 per cent from a year ago.

Source: Sydney Morning Herald