The two previous drops had the expected impact on the average deposit rate offered by financial institutions across the board, as this graph shows (i.e. the rates followed suit and dipped accordingly).
If more rate cuts follow in 2015, as has been predicted by several industry experts, we can therefore probably expect a similar reaction, with online savings rates dropping again too.
Even so, it is certainly worth shopping around for the best rate possible on your savings account. A quick analysis of the figures at Canstar headquarters revealed that the differences between lowest and highest account rate offered across various categories could vary quite significantly. Sadly, the double-digit returns on savings accounts are very “last decade”, so we?re only talking small numbers here, but even so, this is what Canstar found in certain categories:
|Account type||Highest rate||Lowest rate||Difference|
Of course, as Canstar’s star ratings also show, the best rate doesn’t necessarily equal the best product. With so many features, fees and conditions to bear in mind when choosing the right account, it?s a good thing Canstar’s team of analysts is here to do all the hard work!
The full Canstar Deposits Star Ratings Report for April 2014 is available for consumers to download now!