Why term deposit rates change from week to week

Suncorp Bank executive manager Craig Fenwick says term deposit rates regularly fluctuate.

“It depends what's happening in the financial markets and for banks' competition,” he says. “In any given week, competition can be intense and you will see strong rates out of the market and that's for all different terms.”

Fenwick says traditionally interest rates on longer fixed terms are higher, but says deposit holders must shop around.

“If they are looking for yield there are some good rates on term deposits, but that comes with a downside which is you do lose access to that money for that period,” he says.

Source: News.com.au.

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