SGB becomes deposit contender
(1 June 2010 – Australia) Westpac-owned St George has ramped up its efforts to secure a larger portion of domestic deposits, as debt woes in Europe increase funding costs in the overseas markets.
The bank announced that it would be increasing the interest rate on its main online savings account by 1.25 percentage points to 4.85 percent.
The increase puts St George’s SENSE transaction and savings account in a more competitive position amongst the market leaders.
The bank also abolished monthly account fees provided the account holder deposits a minimum of A$2000 into the account.
New regulations requiring banks to hold higher levels of capital has increased domestic competition post GFC, however deposit rivalry now is more fierce than ever as European debt woes force the cost of acquiring funding from overseas upwards.
The increase puts St George’s SENSE transaction and savings account in a more competitive position amongst the market leaders.
The bank also abolished monthly account fees provided the account holder deposits a minimum of A$2000 into the account.
New regulations requiring banks to hold higher levels of capital has increased domestic competition post GFC, however deposit rivalry now is more fierce than ever as European debt woes force the cost of acquiring funding from overseas upwards.
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