Australians urged to compare term deposits 'to avoid missing out'

Savers should compare term deposits to ensure they are getting the best returns on their money, it has been suggested.

John Kavanagh, a finance columnist for the Sydney Morning Herald, argued that while Australians have benefited from a "rates war" in recent months with financial institutions competing for customer deposits, "savers should not assume their bank is always giving them the best deal".

Mr Kavanagh noted that in the term-deposit market, the Australian Securities and Investments Commission has referred to a dual-pricing strategy that has left many depositors with rates "that are less than optimal".

He said that savers should therefore keep an eye on how their financial institutions are adjusting rates, adding that UBank, ING Direct, RaboPlus (now RaboDirect), Bankwest and Citibank all left their rates unchanged or passed on only part of the increase when the Reserve Bank hiked the official cash rate by 25 basis points in April.

Meanwhile, it was announced last week that super funds will be required to be more transparent and accountable when reporting their financial affairs under recommendations to be issued in the final report of the Cooper Review.

This article is brought to you by Mozo – Helping you compare term depositsADNFCR-1761-ID-19814500-ADNFCR