Why the RBA is a super saviour

Some savers are concerned lower interest rates are hitting their deposits and super funds. But because average inflation has been sitting at just 2.4 per cent since 2009, people's purchasing power has actually been increasing.

What interest rate on a government guaranteed, risk-free term deposit would you prefer? 4.5 per cent or 6.0 per cent?

This is not a trick question, but the answer must be dependent on what the expected rate of inflation is and will be. With just the interest rate option, no one should be able to give a firm answer.


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