Banks are being increasingly flexible over term deposits

Many Aussies have been unhappy about the apparent reluctance of the country's major banks to increase interest rates on term deposits and savings accounts in recent months.

The Reserve Bank of Australia (RBA) opted not to lower the cash rate in February or March, which opened the door for many lenders to increase the rates attached to their home loans.

However, assistant governor of the RBA Guy Debelle believes customers can still secure a good deal on term deposits, as banks are becoming more flexible – all you have to do is ask.

Indeed, Mr Debelle suggested some institutions will offer more attractive rates than those advertised if people are willing to enquire about them.

He suggested that since the global economic downturn, banks down under have been raising more cash from deposit accounts than wholesale funding sources.

"Banks have been increasingly paying customers more than the rate advertised in the window if the customer asks for it, reflecting competitive pressures," he remarked.

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