It comes after the Reserve Bank on Friday said rates on term deposits,which are popular with self-funded retirees,had fallen more sharply than other savings rates during 2019,and by more than the decline in the cash rate set by the RBA.
One likely reason for the trend is that banks have been able to raise funds cheaply from international markets,where interest rates have plunged as central banks try to stimulate lacklustre economies. With loan growth also slow,it means the banks have less need to compete aggressively for funds from households.
Canstar's analysis showed 17 institutions made 110 cuts to term deposit rates since the start of January,compared with 47 rate increases. The typical returns from term deposits are well below the inflation rate of 1.8 per cent.
The average cut for a one-year term deposit was 0.1 percentage points,taking the average rate to 1.43 per cent,while it said an average three-year term deposit paid an interest rate of 1.37 per cent.
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Canstar finance expert Steve Mickenbecker acknowledged term deposit rates bounced around more than other rates,but the clear trend was that they were continuing to fall."It's a pretty consistent drift down,"Mr Mickenbecker said.
The RBA'sStatement on Monetary Policy on Friday also said term deposit interest rates had fallen by about 100 basis points over 2019,while rates for at-call savings accounts had fallen by about 0.6 to 0.7 percentage points in the same period.