Crunch time for savers – ACT NOW. Savings rates are being crunched as the Reserve Bank continues to ease the official cash rate and banks pass cuts through savings accounts and term deposit rates. “Banks and credit unions are trying their best to limit rate cuts to savers,” said Vadim Taube, chief executive of financial comparison site InfoChoice. “But it’s absolutely impossible for them to shield depositors completely from the pain of low savings rates.” Top 10 Highest Term Deposits for tier over $5,000 – 2 months term “The lowest term deposit rates and base savings account interest rates are now a full 1 per cent below the rate of inflation, which is currently 1.30 per cent, while the best rates are a full 1 per cent or more over the rate of inflation.” That means savers need to compare the rates they are getting with their current term deposit provider with the best rates in the market to ensure they are not effectively losing money by leaving their cash in the bank. If your interest rate is below the rate of inflation your money will buy less goods and services over time, because prices will rise faster than your savings. Top 10 Highest Term Deposits for tier over $5,000 – 6 months term Vadim Taube said savers really need to act now because term deposit rates change regularly. “Term deposit rates will fall further from where they are now because the July rate cut has not yet been passed through to all term deposit rates. “Now is the time to lock in a good term deposit rate, like the Commonwealth Bank’s 2.20 per cent for 5 months, because rates are only heading down in 2019.” Top 10 Highest Term Deposits for tier over $5,000 – 12 months term You can use the InfoChoice term deposit calculator to work out how much each product is likely to return. Savers can feel comfortable about moving their money to second tier, mutual and regional banks or credit unions because all Authorised Deposit Taking Institutions (ADIs) are covered by the Commonwealth Government’s Deposit Guarantee scheme. Compare term deposits from Australia’s major banks and credit unions at InfoChoice. The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.