Savings account interest rates on the up

Banks are increasing the interest rates on their savings accounts, it has been noted.

Long-term deposit accounts are seeing a boost in interest, according to reports, with institutions such as Bankwest recently increasing its fixed rate for a five-year bank term depositto seven per cent.

Similarly, the Commonwealth bank has upped its equivalent figure to 6.5 per cent.

Ratecity’s chief executive Damien Smith commented people should be aware that if they put their money in such a savings account, they must be prepared to leave the money or pay a large break fee.

Meanwhile, Shaun Cornelius, InfoChoice chief executive, made a comment on bank term deposits, stating: "Term deposits do have higher rates if you are prepared to lock away savings for more than three years."

He added online products are becoming increasingly popular.

The Reserve Bank of Australia recently decided to keep the national interest rate at three per cent.

It stated there would be no further need for rate cuts thanks to improvements in the global economic situation.

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