Money in the bank? You risk losing money

0

Requirements vary, but the most common include the requirement to deposit a certain minimum amount of money into an account each month, or not to make any withdrawals.

Some bonus savings accounts have no conditions, but only pay the bonus rate for a set period of time.

The highest paying bonus account in Canstar’s database is 1.35% from Macquarie Bank. The rate is paid for four months, unconditionally, after which it reverts to a base rate of 0.95%.

Another lender, 86,400, pays a bonus rate of 1.2% which is ongoing – as long as the saver deposits at least $200 per month into one of their spending or savings accounts. If the conditions are not met, it reverts to a base rate of 0.1%.

In anticipation of the RBA starting to raise rates this year, banks have raised the rates they pay on term deposits, offering better yields for those who want to tie up their savings for a fixed period.

“You can now find one-year term deposits yielding up to 1.92%, with an average of 0.63%,” says Watson. “Last October, the average one-year term deposit was 0.46% and the maximum rate was 0.85%.

However, by locking in a term deposit now, savers could miss out on higher interest rates for savers later, Watson says.

Last week the RBA gave its strongest indication yet he would probably start raising interest rates.

The central bank said rising inflation and stronger-than-expected wage growth had “advanced the likely timing of the first increase”.

Loading

Craig James, chief economist at CommSec, said our central bank would likely want to see the next inflation reading – due Wednesday – and payroll data, due May 18, before raising rates at its meeting. of June 7.

However, a rate hike at the next RBA meeting in early May “cannot be completely ruled out”, James said.

Some banks have already started raising interest rates on their savings premiums, anticipating an official hike.

“While this may be good news, it doesn’t take away the importance of finding the best deal,” Watson says.

“There is an interest rate chasm between the high and the low [payers] in the market,” he said.

Share.

Comments are closed.