04 Apr – 08 Apr 2016

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No one really expected the RBA to make any changes to the official cash rate at its April meeting and so no one was disappointed with the outcome. There is still an easing bias implied by its statement but perhaps this is just part of the RBA’s insurance policy where it can cut rates should future data point it in that direction. Recent data is somewhat neutral in this regard. ANZ’s job ads series levelled out but did not fall, while the Melbourne Institute’s Inflation Gauge slipped back and indicates headline inflation is back below 2%.

Markets certainly think there’s more than a good chance of upcoming rate cuts and the net effect of the latest batch of data was for cash markets to be even more confident of rate reductions this year. Prices in the cash markets implied shortened odds of a rate cut in every month through to September 2016. Post-September 2016 markets are factoring in an additional rate cut to 1.50% and the probability of this is put at around 34% by May 2017.

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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CASH ACCOUNTS

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

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