Deposit shock: A note on interest rates

The bank response to Tuesday's RBA cut is startling.

This is a special alert to Eureka readers using bank deposits. The quick decision by Commonwealth Bank's chief executive Ian Narev to lift term deposits after the Reserve's Bank interest rate cut yesterday had a nasty catch to it. The new higher rates do not cut in until August 19, which means that if you have maturing deposits before then you may need to take them in cash to get the higher rates.

Similarly, be aware of placing money on deposits before August 19. None of the major banks have altered their websites term deposit rates, and they now bristle with traps for inexperienced players. (*See at bottom for August 19 rates.)

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