Banks have been disloyal on term deposits, says Mozo

Monday 29 November 2010

Article by Mozo

Financial comparison website mozo.com.au has criticised the major banks for failing to raise term deposit rates following the lift in the official cash rate earlier this month.

Banks have been disloyal on term deposits, says Mozo

None of the "big four" banks have yet increased their term deposit interest rates since the Reserve Bank's official hike of 0.25 per cent on Melbourne Cup day (November 2nd).

Speaking to the Daily Telegraph, Mozo managing director Rohan Gamble urged consumers to compare term deposits and switch to better deals.

"This is no time for loyalty, this is the time to cherry-pick. The banks have made it very clear that they are not loyal to us," he said.

"I think it's reasonable to expect savings rates will move up with the RBA. They haven't, so all bets are off."

Indeed, it was reported that the failure to implement a 0.25 percentage point rise has served to reduce the banks' combined interest bill by up to $1.28 billion a year, or $24.6 million a week.

The big four banks sparked outrage earlier this month by raising their variable home loan rates above the RBA's official increase.

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