Banking

Australian banks have certainly benefited from the conservatism of Australians with a massive rise in deposits. But that’s causing a plunge in term deposit rates.

In the last financial year, Commonwealth Bank’s deposits rose a massive $26 billion and all other banks are experiencing the same thing. At the same time customers aren’t borrowing as much.

So the pressure is of the banks to lure more deposits and they’ve dropped term deposit rates massively.

In some instances, 6-12 month term deposits rates have almost halved in the last 2 weeks.