The title is cut and paste from: http://www.infochoice.com.au/banking/savings-account/news/gr…
Thought you'ld all like to know things ain't that grim for our savings earnings.
Great News for Savers as Rates Go UP, Not down!
[Deactivated] on 04/08/2016 - 12:31
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Only some term deposit products are rising.
1) Australia’s biggest bank, the Commonwealth Bank, has announced that one-year term deposit rates will increase by 0.55 percentage points to 3 per cent. Commonwealth’s two-year term deposit rates will rise to 3.1 per cent and CBA’s three-year term deposit rate is going up to 3.2 per cent.
2) National Australia Bank has announced an increase in interest rates on the NAB eight-month term deposit by a massive 0.85 percentage points, to 2.9 per cent.
3) ANZ has raised one-year term deposit rates by 0.6 percentage points to 3 per cent. ANZ’s two-year term deposit rate is going up by 0.75 percentage points, to 3.2 per cent.
4) Westpac is raising interest rates on its one, two and three-year term deposits. Westpac’s term deposit rates are going up by 0.45 to 0.55 percentage points.
1) Australia’s biggest bank, the Commonwealth Bank, has announced that one-year term deposit rates will increase by 0.55 percentage points to 3 per cent.
I am a bit confused … so let's just take Commbank. If I go to Commbank Term Deposit Rates and Fees, I don't see anything even close to 3%. It says 2.35-2.45% for 12 mths.
2) National Australia Bank has announced an increase in interest rates on the NAB eight-month term deposit by a massive 0.85 percentage points, to 2.9 per cent.
Likewise NAB's term deposit rates. 8 months rate is advertised at 2.05%.
So, is this announcement correct, and if so, when do the new rates apply? Many thanks in advance.
Found the announcements & dates when the term deposit rate increases will take place:
1) Commbank - 19 August - announcement
2) NAB - 8 August - announcemen
3) ANZ - 5 August - announcement
4) Westpac - 8 August - announcement
Pretty interesting. I wonder why the banks are betting on higher rates?
The big banks benefit from this. According to this article, numerous reasons including:
- more profits, term deposit amounts small compared to home loans
- putting pressure on smaller rivals
- anticipating bad debts to rise, from loans in places like WA
- more domestic deposits and less reliance on wholesale markets to raise money especially in view of financial turmoil overseas
And this may be good on a macro level, and perhaps even the Reserve Bank may be quietly relieved about this.
this is outrageous. why isn't the pm looking into this practice by the banks rewarding savers?
One for the shame file.
Sadly, he probably is!
Ubank are offering > 3% at call, I can't see why you would use a term deposit, except if you have > $200k, or don't want to setup a automatic transfer of $200/mth to stay in the Ubank rules? Am I missing something?
Anticipating rates dropping further I guess?
True, however it sounds like the term deposit rates are the new norm, so another rate cut and you can still switch to a term deposit at that time. I think its unlikely Ubank will drop their rate following the latest RBA drop. It sounds to me like banks are keen to maintain savings level to meet their minimum capital requirements.
Body Corporate's usually dump the sinking fund money into term deposits without looking at where there is a better option at call as its "set & forget" and someone else's money. So while there is demand for term deposits, the banks provide a product, even if it is a worse product, lol!
ING dropped their Savings Maximiser to 2.75%. The question is if UBank will too.
SOB.
I am sure Ubank will :-)
U Bank Ultra Saver is 3.12% at call, but for how long? If they drop it, I'm going to have to think about a dreadful Term Deposit at CBA. Otherwise invest in more high yield shares which is not exactly the ideal situation right now.
If you don't like your funds locked up for so long, ING 210days 2.95% might be worth considering. Or 1-year 3.05%, which is higher than CBA. The smaller banks may yet come up with some better term deposit rates …
Just out of interest -
UBank USaver with Ultra 2.87%
ING Savings Maximiser 2.75%
Bankwest Smart eSaver 2.45% (TD is 3%)
Mebank (3.35% hoop jumper special) not dropped yet
RAMS Saver account (3.15%) not dropped yet
RABO 5 year Term Deposit 3.30% p.a.NAB predict another two rate cuts to come
http://www.theaustralian.com.au/business/economics/nab-tips-…
Back to term deposits maybeOff to gambling maybe?
Do you mean shares, or casino?
What it says about our economy - that is concerning …
A lot of these term deposit accounts pay the interest annually so you miss out on compounding interest like you get with the regular savings accounts that pay interest monthly.
Looks like Mebank have just dropped their savings rate:
https://www.mebank.com.au/personal/bank-accounts/online-savi…1.3% * 1.8% = 3.10%
What's the current inflation rate again?