Savers benefit from high interest rates

Savers are benefiting from high interest rates on their accounts, many of which are over and above the Reserve Bank of Australia cash rate.

According to an article by’s Anthony Keane, some savings accounts pay more than six per cent as banks try to attract more deposits.

Mr Keane claims there hasn’t been a better time to start saving in the past ten years.

The chief executive of credit union Community CPS Australia Kevin Benger told the news provider that high interest rates on savings accounts should continue in the short term, as Australia’s banks are still reluctant to use international markets to boost their funds.

"Everybody is fighting for the retail deposits now because it represents a cheaper source of funds," Mr Benger said.

At the moment, 12-month deposit rates are paying as much as 6.3 per cent a year – more than 2.5 per cent higher than the RBA’s cash rate, which the bank fixed at 3.75 per cent today.

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