11 Apr – 15 Apr 2016

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While Australian financial markets still generally think a 25bps cut to the official rate is likely this year, they are a lot less certain. A 2016 rate cut was viewed as a certainty at the start of the week but a few days later they were just highly-likely. One could argue there is not much difference between the two but it is worth remembering that cash markets prior to this week were not only factoring in one rate cut but they were also placing a significant probability on a second rate cut. Not any longer. Early in the week NAB’s February business survey pointed to the strongest domestic conditions in 8 years and although the Westpac-Melbourne Institute consumer survey was not quite so bright and cheery, when strong March jobs figures were released two days later the reaction was swift. The probability of a September rate cut went from 98% to 58%, which is still significant but closer to a coin-toss than a good bet. However, markets are still a long way from being convinced of any strength in the domestic economy and they still price a December rate cut as a 78% chance.

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 UBank’s USaver Ultra account.


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ProductInt p.a.Special Cond
AMP Saver Account2.60%31 days’ notice
AMP Notice Account2.70%
ANZ Premium2.00%
ANZ Progress Saver2.51%Min balance $5,000
Arab Bank Online Savings2.30% Up to $500k.
Bankwest Smarter Esaver2.70%Zero w/draw pm up to $500k
BoQ Cash Man Account2.05%Limit 1 w/draw pm
BoQ Bonus Interest Savings2.75%$250k+
CBA NetBank Saver1.80%$200pm dep, $100k lim, 1wd pm
CBA Goal Saver Ac2.70%
CUA eSaver Plus Account2.90%
Heritage Online Saver2.70%$750,000+
ING Savings Accelerator2.75%$150k+
Macquarie CMA1.90%
ME Online Savings1.80%
NAB iSaver1.80%
NAB Reward Saver3.10%1 dep no w/draw mth
Rams Saver Account3.15%$200 pm no withdrawal
Suncorp eOptions1.85%
USaver2.31%$200 pm up to $200k
USaver Ultra3.37%Up to $200k +$2k pm dep
Westpac eSaver1.75%
Westpac Reward Saver2.50%dep $50 and no withdrawals