Term deposit rates 'likely to fall'
Article by Mozo
With so many people welcoming the recent interest rate cuts with open arms, it has been very easy to forget about those who have term deposits.
Aussies who have spent their life building a big enough nest egg to allow them to retire comfortably will have been dreading the Reserve Bank of Australia's announcement that the cash rate would be reduced by 50 points.
Cynics will tell you that banks are far less reluctant to lower the rates attached to their term deposits and savings accounts than they are with their loan products.
Experts at the Deutsche Bank have warned Australian savers that rates could fall even further in the next 12 months.
Speaking to the Sydney Morning Herald, analyst James Freeman said some banks may trim their term deposit rates by another 30 points in the coming months.
"Further movements in either the lending rates or deposit rates are needed to offset funding pressures," he remarked.
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