The week began quietly enough, with economic data not having any real effect on short term yields or cash market prices. Then the labour forces figures were released by the ABS and markets further discounted the odds of a rate cut by October 2016, making it a 50/50 bet. Not long ago, a rate cut in the first quarter was seen as a given; now that likelihood is only rated a 20% chance, down from 28% a week before. However, in an unusual twist, cash markets improved the chances of a rate cut in November 2016 or after, but the odds of this are still around 50%.
ANZ, which had previously said the RBA will cut the cash rate twice in 2016 – once in February and once in May – now says that the RBA will still cut but it is likely to be once in May and once in August.
There were two changes to our cash accounts table over the course of the week. ANZ’s Progress Saver account rate was reduced by 20bps as was National Australia Bank’s Reward Saver rate.
Across all the cash accounts in the Yield Report survey, the average rate was 2.46%, down the previous week’s average of 2.48%.
|Product||Int p.a.||Special Cond|
|AMP Saver Account||2.60%||31 days notice|
|AMP Notice Account||2.70%|
|ANZ Progress Saver||2.51%||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||2.85%||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|