There were no changes to our list of cash account interest rates this week.
There were a few reports out this week and it started with NAB’s May business survey. The survey indicates business activity is at levels well above average, although business confidence did drop back to average levels.
The Westpac-Melbourne Institute’s consumer survey then followed and here the news was not so good. The RBA has flagged consumer spending to be an area of concern and this survey shows this is still the case. The report which gathered the most attention locally was the May Labour Force figures. Economists expected a small increase in employment numbers but instead they got a sizable increase and the employment rate dropped even though the participation rate increased. The Melbourne Institute’s inflation expectations survey was last cab off the rank and it was largely lost as investors and traders focussed on the employment figures.
Cash futures markets reacted by cutting back on the likelihood of any possible rate cut for the rest of 2017 and early 2018. There is still a bias towards a rate cut but the probabilities implied by cash futures are close to zero. (For instance, November 2017 is viewed as having an 8% chance of a 25bps rate cut.) It stays this way until around May 2018 when a small rate raise bias is present and the probabilities rise each month until August 2018 when the market has factored in a 1-in-3 chance of a rise to 1.75%.
See our table below for a comparison of all the latest cash account rates which are available.
|Product||Int p.a.||Special Cond|
|AMP Saver Account||2.10%||31 days notice|
|AMP Notice Account||2.15%|
|ANZ Progress Saver||1.81%||Min balance $5,000|
|Arab Bank Online Savings||2.00%||Up to $500k.|
|Bankwest Smarter Esaver||1.75%||Zero w/draw pm up to $500k|
|BoQ Cash Man Account||1.45%||Limit 1 w/draw pm|
|BoQ Bonus Interest Savings||2.20%||$250k+|
|CBA NetBank Saver||1.05%||$200pm dep, $100k lim, 1wd pm|
|CBA Goal Saver Ac||1.90%|
|CUA eSaver Plus Account||2.85%|
|Heritage Online Saver||2.25%||$750,000+|
|ING Savings Accelerator||2.35%||$150k+|
|ME Online Savings||1.30%|
|NAB Reward Saver||2.55%||1 dep no w/draw mth|
|Rams Saver Account||3.00%||$200 pm no withdrawal|
|USaver||1.81%||$200 pm up to $200k|
|USaver Ultra||2.87%||Up to $200k +$2k pm dep|
|Westpac Reward Saver||1.75%||dep $50 and no withdrawals|