(27 March 2012 – Australia) Reserve Bank of Australia (RBA) assistant governor Guy Debelle said banks are keen to attract savers and many are paying above advertised rates for deposit accounts.’That is, banks have been increasingly paying customers more than the rate advertised in the window if the customer asks for it, reflecting competitive pressures,’ he told news.com.au.
‘When you see the term deposit sheet advertised in your local bank, you should be able to go in and extract an extra 10 basis points (one-tenth of a percentage point) off them.’
The big four banks are advertising term deposit interest rates of 5.5 percent.
Debelle said that since the global financial crisis began, banks had been raising more of their money from savings account deposits and less from wholesale funding sources.
Australia’s major banks now raised more than half the funds they lend to home buyers and other borrowers from customers’ savings accounts, compared to less than 40 per cent five years ago.
Debelle said the race is on to lure more savers.