There were only three accounts in the YieldReport survey which had not cut rates on cash accounts after the RBA August rate cut and now there are only two. The rate on NAB’s Reward Saver was reduced by 25bps this week, which leaves the RAMS Saver and Suncorp eOptions accounts as the last two. RAMS Saver account is still offering the highest rate in the YieldReport survey.
The RBA left rates unchanged as expected and economic data released this week was net positive. The week started off with a strong rise in ANZ’s job advertisements survey (rising 1.8% in August and 8.0% YoY) followed by Q2 GDP growth at 3.3% (annual).
Thursday’s trade balance numbers came and went without too much comment but Friday’s release of July finance approval numbers were “materially weaker” according to Westpac’s Matthew Hassan, although he suggests they not be relied on without additional confirmation.
While some economists are expecting a November rate cut, cash markets are considerably less certain this week than they were a few weeks ago. Contracts were priced with a 28% probability of a 1.25% cash rate in November and there are now no months in which a rate cut is fully priced in. That is not to say the cash market does not attach a high probability of another rate cut; it’s a 50/50 bet by March 2017 and an 80% chance by August next year.
|Product||Int p.a.||Special Cond|
|AMP Saver Account||2.10%||31 days notice|
|AMP Notice Account||2.20%|
|ANZ Progress Saver||2.01%||Min balance $5,000|
|Arab Bank Online Savings||1.90%||Up to $500k.|
|Bankwest Smarter Esaver||2.20%||Zero w/draw pm up to $500k|
|BoQ Cash Man Account||1.55%||Limit 1 w/draw pm|
|BoQ Bonus Interest Savings||2.30%||$250k+|
|CBA NetBank Saver||1.25%||$200pm dep, $100k lim, 1wd pm|
|CBA Goal Saver Ac||1.95%|
|CUA eSaver Plus Account||2.75%|
|Heritage Online Saver||2.25%||$750,000+|
|ING Savings Accelerator||1.90%||$150k+|
|ME Online Savings||1.30%|
|NAB Reward Saver||2.70%||1 dep no w/draw mth|
|Rams Saver Account||3.15%||$200 pm no withdrawal|
|USaver||1.81%||$200 pm up to $200k|
|USaver Ultra||2.87%||Up to $200k +$2k pm dep|
|Westpac Reward Saver||1.85%||dep $50 and no withdrawals|