Interest rates for long-term deposit accounts are on the rise as banks compete for capital, according to financial comparison website RateCity.
Following RaboPlus’ lead, Bankwest recently increased its five-year term deposit fixed interest rate to 7 per cent per annum, while the Commonwealth Bank has raised its five-year term deposit to 6.5 per cent per annum.
“A 7 per cent rate in this market by a Standard & Poor’s AAA-rated institution like RaboPlus is very good value,” RateCity chief executive Damian Smith said.
According to Smith, interest rates are expected to climb in the short term, and given the current financial climate, people should focus more on comparing cash investment options.
<table id="table1" valign="middle"
