Handy Profits For Those With Deposits
Sydney Morning Herald
Thursday August 3, 2006
MANY Sydneysiders, particularly self-funded retirees, are quietly rejoicing that interest rates on their savings and term deposits are on the way up, in some cases to more than the Reserve's official cash rate.
Sixty-five per cent of households do not have a mortgage, and stand to benefit from the bigger returns.A number of banks, including HSBC, BankWest, Suncorp and ING Direct, joined the rush to pass on the benefit of yesterday's increase to depositors.HSBC led the pack, increasing the rate on its online Serious Saver account by 30 basis points - more than the Reserve's increase - to 6.20 per cent, the highest ongoing rate available.BankWest lifted the introductory rate on its TeleNet Saver account to 6.60 per cent for the first 12 months, and 6 per cent after that.Andrew Willink, the managing director of the financial research company Cannex, said many people would benefit from yesterday's rate rise.Many were young "who are into saving and understand the ability to switch and to shop".Retirees with money in fixed-term deposits and parents intent on building family assets would be among the winners.Mr Willink urged consumers to grab the higher rates on offer. "Gone are the days where you put money in at a zero or 0.1 per cent interest rate," he said.Suncorp offers a combined transaction and savings account which will return 5.9 per cent from Monday, the bank announced yesterday. Citibank and Westpac offer transaction accounts yielding 5.75 per cent and 5.8 per cent respectively.The four largest banks are expected to pass on the full increase to mortgage holders by the end of the week.As the head of NAB's business banking arm, George Frazis, said yesterday: "These days the banks don't wait."
© 2006 Sydney Morning Herald