5 Sep – 9 Sep 2016

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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.

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CASH ACCOUNTS

ProductInt p.a.Special Cond
AMP Saver Account2.10%31 days’ notice
AMP Notice Account2.20%
ANZ Premium1.50%
ANZ Progress Saver2.01%Min balance $5,000
Arab Bank Online Savings1.90% Up to $500k.
Bankwest Smarter Esaver2.20%Zero w/draw pm up to $500k
BoQ Cash Man Account1.55%Limit 1 w/draw pm
BoQ Bonus Interest Savings2.30%$250k+
CBA NetBank Saver1.25%$200pm dep, $100k lim, 1wd pm
CBA Goal Saver Ac1.95%
CUA eSaver Plus Account2.75%
Heritage Online Saver2.25%$750,000+
ING Savings Accelerator1.90%$150k+
Macquarie CMA1.40%
ME Online Savings1.30%
NAB iSaver1.30%
NAB Reward Saver2.70%1 dep no w/draw mth
Rams Saver Account3.15%$200 pm no withdrawal
Suncorp eOptions1.60%
USaver1.81%$200 pm up to $200k
USaver Ultra2.87%Up to $200k +$2k pm dep
Westpac eSaver1.25%
Westpac Reward Saver1.85%dep $50 and no withdrawals