Term Deposit Rates on the Rise at Commonwealth Bank
It is perhaps a sign of where they see the long term cash rate heading - up. The Commonwealth bank on Monday announced that it is offering a term deposit rate of 6.00%. That is less than a 1% discount on their standard variable loan rate.
The term deposit rate of 6% applies to deposits of at least $10,000 and a maximum of $500,000.
According to a press release from the Commonwealth Bank, they are "offering Australians the chance to boost their 2010 savings plan with a great term deposit rate of six per cent."
"With more Australians saving with us than any other bank, we are committed to giving new and existing customers competitive offerings that deliver value and a significant fixed return."
Other major banks are yet to indicate if they will match the offer by the Commonwealth.
Speculation is rife that the Reserve Bank will increase the official cash rate for the fourth straight month in a row. That would mean another hike of at least a quarter of one percent for variable loans.