After a decent run of results, banks are taking it a bit easier with term deposits, according to one industry expert.
Banks are feeling they can start to ease off on term deposits slightly after a good run of results, one industry expert has noted.
According to TS Lim, banking analyst at Southern Cross Equities, the urgency for competition among these products has been reduced following a drop in demand for Aussie credit, the Sydney Morning Herald reports.
One of the firms that has lowered rates on deposits is the Commonwealth Bank - which offers a range of credit cards - and it is "feeling the most pinch of all the majors", Mr Lim observed.
But he also pointed out that online banks need to maintain their rates to keep the balance up.
These comments come after Annette Sampson, writing for Business Day, stated earlier this year that term deposits should become a part of people's lives as they have the advantages of "simplicity, a known income stream and security of capital".
By Emma North
