Term deposits more attractive than savings account
Depositors who think the rate cycle has peaked are looking to lock in high rates of return in term deposits before interest rates begin to fall again. Commonwealth Bank says it decided 12 months ago to discontinue debentures and instead extended its range of term deposits on offer. However there is little demand for terms beyond 12 months now said the bank. BankWest say there is noticeable shift away from high interest online savings accounts to term deposits as people look to lock in high rates.
Source: The Age