Financial analysts and economists are widely expecting that the RBA will announce a cut in official Australian interest rates at their meeting this month. Many are expecting that the cut cut be by 0.50% percentage points which would be a significant cut.

Normally this would be good news for home owners but the major banks and the RBA are already warning that any rate cut may not be passed on to home owners in full due to the increased borrowing costs the banks are facing during the ongoing credit crunch.

While home loan rates may not fall, don’t be surprised if the banks are keen to cut interest rates on the money they give out to customers in the form of interest from high interest savings account products and term deposits. There is probably no rush to secure a high interest account as most rates are variable and would move in line with changes by the bank you hold the account with. On the other hand, term deposit rates could be worth locking in now before they take a tumble over the next couple of weeks. Once you secure a term deposit rate then that rate is fixed for the length of the term you sign up for.

Interest Rate Fall to Cut Deposit Rates is a post from: High Interest Savings Accounts