There were several pieces of data released during the week which were of interest to cash markets. New vehicles sales, the Westpac-Melbourne Institute leading index, RBA minutes from the March meeting and February unemployment figures. Most had no effect and contained no real surprises and depending on which bank economist you are listening to, the RBA is either “comfortably on hold” or “retaining its easing bias”.
In any case, cash markets must be suffering from multiple-personality disorder by now. Either data is released which indicates higher future interest rates, such as the above-expected GDP growth from early March, or it is a report such as the February jobs data which is viewed as increasing the chances of a rate cut. The jobs report, being the latest piece of data to be reported, sent the probabilities of a RBA rate reduction higher and one 25bps cut has been totally factored in by November. However it’s worth keeping in mind it wasn’t all that long ago cash markets were totally factoring in rate cut by August.
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.
|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||2.05%||Limit 1 w/draw pm|
|BoQ Bonus Interest Savings||2.75%||$250k+|
|CBA NetBank Saver||1.80%||$200pm dep, $100k lim, 1wd pm|
|CBA Goal Saver Ac||2.70%|
|CUA eSaver Plus Account||2.90%|
|Heritage Online Saver||2.70%||$750,000+|
|ING Savings Accelerator||2.75%||$150k+|
|ME Online Savings||1.80%|
|NAB Reward Saver||3.10%||1 dep no w/draw mth|
|Rams Saver Account||3.15%||$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|