Home loan customers may have been hammered by the banks, but term depositors are still reaping rewards.
Banks have defended out-of-cycle rate moves by pointing out benefits to depositors, and now comparison site RateCity has defended the claims. While at-call savings accounts have seen little benefit, term deposit rates have remained competitive, the company's CEO Damian Smith claimed.
"The major banks continue to look for term deposits as they try to shore up funding sources and attract a more cautious investor," he said.
Smith said the major banks had passed on around 80% of the RBA's cash rate cuts since November, while term deposits had only come down by 40% of the RBA reductions.
"We suspect term deposits will continue to be favoured by the banks - while rates may come down slightly, savers in these products are likely to hang onto higher rates, with some of the pain being borne by variable rate home loan customers," he said.
Deposit pressures easing for banks