RACQ Bank has announced that it will increase interest rates on term deposits by up to 0.25% p.a.

The Federal Government is reportedly encouraging the Australian Competition and Consumer Commission (ACCC) to investigate competition in the savings sector so Australian savers aren’t being left holding the short end of the stick.Īt the time of writing, relatively few banks and ADIs have so far announced increases to interest rates on their term deposit products: Of course, not all banks and Authorised Deposit-taking Institutions (ADIs) have announced that they will be raising their interest rates on deposits, or that these rate rises will match the hikes on loan products. This may mean more pain for mortgage holders, savers could potentially benefit from rising rates. The Reserve Bank of Australia (RBA) has indicated that more rate hikes may be necessary in 2023 to help bring down Australia’s high inflation. The ninth consecutive increase to Australia’s national cash rate was revealed last week, making this the fastest hiking cycle in decades.