Savers have something to celebrate at long last. Term deposit rates have cracked 3%!

But a warning – you will need to shop around to get the best rates because there is a huge difference between what individual banks are offering. AMP Bank is paying 3.55% pa (interest paid annually) for a 5-year term while ANZ is only offering 0.20% pa for the same period. For a 12 month term, Macquarie is paying 1.90%. Go to one of the majors and the top rate on offer for 12 months is just 0.25%.

Whereas the Reserve Bank of Australia has yet to increase the official cash rate of 0.10%, the market has started to price in significant increases and driven government bond rates higher.

Sign up to the Switzer Report to read the full article.