Aussie banks benefit from huge demand for term deposits

Australian banks are reaping the rewards of the huge demand for term deposits across the country.

The Herald Sun has got hold of figures that suggest nearly 60 per cent of major banks' funding comes from deposits – the highest ratio for 14 years.

Numerous studies have recently found that Aussies are more desperate than ever to save money, as many are concerned about the global economy and the possibility of another recession.

Term deposits are often more attractive than standard savings accounts, as they usually come with higher interest rates, so your hard-earned money is stretching much further in the long-term.

Banks are also becoming less reliant on overseas bonds, which means the cost of insuring their debt continues to fall.

Australia's largest lender – the Commonwealth Bank – now funds more than 62 per cent of its loans from deposits, so it no longer has to source as much cash from abroad.

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