Westpac 'has some of the best term deposit rates'

A Westpac bank official has claimed the institution offers some of the best rates on term deposits.

The group’s executive for retail and business banking also highlighted the competitive rates of the bank’s online savings accounts.

Rates on these products are among the highest it has ever offered, he said.

"[That] reflects our strong commitment to lessening our reliance on volatile offshore term funding markets," he told the Australian.

His comments came as part of his defence of Westpac’s decision to raise its variable rates above the official 25 basis point hike set by the Reserve Bank of Australia (RBA).

Just hours after the RBA announcement, Westpac said its rates would jump by 45 basis points – a decision condemned by treasurer Wayne Swan, who later warned of a customer backlash.

The bank pointed to pressures in terms of funding costs as the reason behind the announcement.

According to the Herald Sun, the bank has raised its term deposit rates in order to attract more medium and long-term funds from within Australia.

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