In more than ten years banks are paying their highest margins over the interest rate, one publication has noted.
Banks are paying the highest
interest rate in more than a decade.
This is according to East and Partners, which believes that the rates look set to become a "permanent fixture" on the market.
And this could be beneficial for investors because there are now term deposits "with virtually no risk" available, as well as rates of more than six per cent to put their savings in to.
The margin paid for term deposits has since shifted, the publication reports, with Aussies now paying a rate of up to one per cent over the official cash rate for the savings accounts, Malcolm Eddy, the Reserve Bank of Australia's (RBA) assistant governor, recently noted.
However, before the global financial crisis people were paying 0.5 per cent below the RBA's rate.
The organisation increased the official cash level by 0.5 per cent at the beginning of the month to 4.5 per cent, which led to some organisations increasing the interest on their saver accounts, such as the NAB.
By Emma North
