Banks are desperate for people to take on term deposits

With the end of the financial year fast approaching, banks are becoming increasingly desperate for people to take on term deposits.

In the past, lenders have had little trouble accessing money from abroad, but borrowing costs have soared in recent years.

General manager of agribusiness at Westpac Graeme Jennings told ABC Rural that banks have had to "go back to basics", which means they need to have deposits coming in if they are going to lend money out.

This is great news for Aussies who are looking to make their savings work a lot harder for them. Rather than having your nest egg sat in a low-interest account, it is well worth comparing deposit packages that have much higher rates attached to them.

Because the market is suddenly so competitive, banks are offering attractive rates in order to gain new customers.

Speaking to the Sydney Morning Herald, Commonwealth Bank's fixed-income analyst Philip Brown said: "Because the regulators treat bank funding gained from long-term deposits more favourably, banks are, as a general rule, prepared to pay higher interest rates for long-term deposits."

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