The Reserve Bank's cash rate hike may be doom and gloom for mortgage borrowers, but Inge Meldgaard is hopeful that higher rates will boost earnings from her savings.
Macquarie Bank announced it would be increasing the interest rate on its transaction account from 0.20 per cent to 1.50 per cent on balances up to $250,000 from June 17, while ING increased the interest rate on its Savings Maximiser account by 0.75 percentage points to 2.10 per cent on balances up to $100,000 from June 15."ING and Macquarie have reset the battlefield for savings rates in what is ultimately a win for savers," said RateCity research director Sally Tindall.
Steve Mickenbecker from Canstar expects more banks will announce their pricing on savings accounts in the coming weeks. "Knowing that the rates were about to go up, knowing what that would do to our potential serviceability, that is causing a lot of anxiety." "We would at least be building a buffer … even if it is $50 over a year, that is still a little bit of additional money that can be helpful in the long run."In general, when interest rates go up, banks do make more profits, but there are other factors than just higher variable mortgage rates.
"We can see banks now seem to be scrambling to basically increase term deposit rates. This creates a degree of complexity on the margin that had not been expected.
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