25 Jul – 29 Jul 2016

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There were no changes to rates in our cash accounts table over the week. The account offering the highest rate in the YieldReport survey is the RAMS Saver Account. This week there was only one thing that mattered for domestic financial markets; the June quarter CPI figures.

Economists were waiting to confirm their expectations of an August rate cut with CPI numbers which were in line with what the market expected; anything weaker would only increase their confidence in a rate cut and anything stronger would have to be so by a large amount to shift thinking. As it turns out, the figures released were pretty much in line and little changed.  Those who expect a rate cut continue to do so and the few which don’t won’t budge either. Probabilities of a rate cut implied by cash market futures actually fell a little although the chance of an August cut is still rated at just over 60% and therefore the market thinks a cut is more likely than no change. November is the month in which cash contracts have fully factored a 1.50% rate and by May 2017 another cut down to 1.25% is given a 70% probability. We will know the answer on Tuesday 2 August when the RBA meets.

credit gdp

While the CPI took all the data headlines, private sector credit figures indicated reasonable but uninspiring lending growth and were of little interest to markets. The 6.2% year-on-year figure was neither high enough nor low enough to garner further interest from analysts.

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CASH ACCOUNTS

ProductInt p.a.Special Cond
AMP Saver Account2.35%31 days’ notice
AMP Notice Account2.45%
ANZ Premium1.75%
ANZ Progress Saver2.26%Min balance $5,000
Arab Bank Online Savings2.05% Up to $500k.
Bankwest Smarter Esaver2.45%Zero w/draw pm up to $500k
BoQ Cash Man Account1.80%Limit 1 w/draw pm
BoQ Bonus Interest Savings2.55%$250k+
CBA NetBank Saver1.50%$200pm dep, $100k lim, 1wd pm
CBA Goal Saver Ac2.20%
CUA eSaver Plus Account2.85%
Heritage Online Saver2.45%$750,000+
ING Savings Accelerator2.15%$150k+
Macquarie CMA1.65%
ME Online Savings1.55%
NAB iSaver1.55%
NAB Reward Saver2.95%1 dep no w/draw mth
Rams Saver Account3.15%$200 pm no withdrawal
Suncorp eOptions1.60%
USaver2.06%$200 pm up to $200k
USaver Ultra3.12%Up to $200k +$2k pm dep
Westpac eSaver1.50%
Westpac Reward Saver2.10%dep $50 and no withdrawals