Updated: Apr 14, 2022
In the week when the RBA again maintained official rates at 0.1% probably due to the upcoming election, the actual rates that some banks were offering went into a sharp divergence. In some cases, Tier 1 banks increased rates by 5-7 fold from the previous week. This is fairly dramatic and signal the beginning of normalised rate cycle with expectations around the 2% mark becoming more common. In fact, 1 year rates are already around the 1.8% mark.
In the example on the left above, we have illustrated that the astute organisation could have increased interest income on a $10m deposit by more than $30,000 on a 6 month term and almost $70,000k on a 9 month term. That becomes significant bottom line contribution when taken collectively across all the ongoing and regular short-term placements.
It is time to move to a digitised and independent platform to ensure optimal returns for your organisations cash funds and thereby ensure that no one can doubt your process and investment decisions . More importantly, visibility and compliance