Long-term deposit rates on the increase
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.
| Savings Accounts |
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
