Term deposits soar at Commonwealth

The number of Australians ploughing their cash into term deposits and savings accounts from Commonwealth is soaring, the Sydney Morning Herald reports.

Financial expert Eric Johnston writes that while the industry as a whole is having a fairly torrid time of it, Commonwealth is well placed to benefit from the slump in the long term.

With the bank experiencing reduced home loan broker fees and a steady flow of cash into savings accounts and term deposits, it is thought to be faring a lot better than most and is likely to emerge victorious once the global economy gets back on its feet.

CBA has been one of the biggest winners of the so-called flight to quality, increasing its loans book at more than twice the rate of market growth while deposits have been rising,” Johnston writes.

Following this month’s rate cut decision from the Reserve Bank, Commonwealth announced that it will be offering new low-interest home loans at rate of 5.74 per cent APR, in a move that is likely to encourage more Aussies to bank with the company.ADNFCR-1761-ID-19020985-ADNFCR