The week started off with the release of the TD-Melbourne Institute Inflation Gauge which suggests Australia’s inflation is not showing any signs of increasing. The RBA meeting then took place and little new emerged from it. The prospects for Australia’s economic conditions “had firmed a little” but “leaving the cash rate unchanged was appropriate” according to the Bank. Later in the week solid GDP data was released but there were some concerns about Australia’s reliance on trade and how the domestic economy was struggling. As a result many economists are still factoring in a rate cut in 2016 but the probabilities attached to a cuts in any given month have generally been reduced. The odds of a rate cut in the first quarter of calendar 2016 now sit at only 28%. By June they rise to a little over 50% but they stand in stark contrast to the odds of a few weeks ago when one rate cut was seen as a certainty and an additional cut was seen as a good possibility.
There was one change to our cash accounts table over the course of the week. Suncorp’s eOptions account rate was reduced by 5bps.
Across all the cash accounts in the Yield Report survey, the average rate is 2.48%. The average rate has risen from the previous week’s 2.41% as ANZ retail V2 account has been removed from the survey and it has been replaced with ANZ’s Premium account.
|Product||Int p.a.||Special Cond|
|AMP Saver Account||2.60%||31 days notice|
|AMP Notice Account||2.70%|
|ANZ Progress Saver||2.71%||Min balance $5,000|
|Arab Bank Online Savings||2.30%||Up to $500k.|
|Bankwest Smarter Esaver||2.80%||Zero w/draw pm up to $500k|
|BoQ Cash Man Account||2.15%||Limit 1 w/draw pm|
|BoQ Bonus Interest Savings||2.75%||$250k+|
|CBA NetBank Saver||1.85%||$200pm dep, $100k lim, 1wd pm|
|CBA Goal Saver Ac||2.80%|
|CUA eSaver Plus Account||2.90%|
|Heritage Online Saver||2.70%||$750,000+|
|ING Savings Accelerator||2.75%||$150k+|
|ME Online Savings||2.00%|
|NAB Reward Saver||3.05%||1 dep no w/draw mth|
|Rams Saver Account||3.40%||$200 pm no withdrawal|
|Usaver||2.31%||$200 pm up to $200k|
|Usaver Ultra||3.37%||Up to $200k +$2k pm dep|
|Westpac Reward Saver||2.50%||dep $50 and no withdrawals|