Bankwest losing ground in term deposit market
Article by Mozo
Bankwest is seeing the number of people putting cash into its bank term deposits dwindle, new data shows.
The Australian Prudential Regulation Authority has found that the bank’s total deposit base has shrunk by $821 million since December, despite claims from the Commonwealth Bank of Australia that 38,000 new term deposit customers have signed up since December 19th.
"A raft of deposits that Bankwest put on at high interest rates before it was bought by Commonwealth Bank are now rolling off our books with some customers choosing to go elsewhere," said Bankwest chief executive Jon Sutton, speaking to the Herald Sun.
However, he insisted that the bank was continuing to make ground in other areas such as credit cards and loans to small businesses.
Earlier this week, FIIG Securities managing director Jim Stening told the Courier Mail that with the RBA pushing interest rates to record lows, bonds may offer a better return than many term deposits.
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