Australians urged to compare term deposits as interest rates are slashed
Westpac, NAB, and ANZ all lowered interest rates on some term deposits by between 0.1 and 0.5 per cent late last week while the Commonwealth Bank dropped its eight-month rate by 0.3 per cent at the end of last month, the Herald Sun reported.
The move has prompted criticism of the major banks particularly as they look set to post a record combined profit of $20 billion this year.
Consumer groups have urged people to compare term deposits before investing their savings.
Rohan Gamble, head of financial comparison site Mozo.com.au, said: "The main priority of the banks is to their shareholders – customers come second. They rely on the apathy of people not switching."
This week, treasury secretary Ken Henry claimed that Australia’s financial system remains competitive despite the continued growth of the big four players.
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