Banks chase cash with interest

Investors long cash are continuing to benefit as banks fight for their short-term deposits with rate returns exceeding eight per cent.

Bank of Queensland this week increased 90 and 180 day tiered Premium Investment deposit rates to 8.10 and 8.45 per cent respectively.

BankWest, ING Direct and Suncorp increased various short-term deposits to between eight per cent and 8.4 per cent, depending on term and value.

Newcastle Permanent, with a Moody's rating downgrade from stable to negative last week, increased 180-day term deposits to 8.2 per cent as they chase funding for the lending books.

At the smaller end of town, Community CPS Australia and Austral Credit Union increased various product returns to between 8.1 and 8.3 per cent.

Of the majors, ANZ increased 180-day tiered deposits to eight per cent, St George increased a suite of deposits with terms from 120 days to one year to eight per cent, with Westpac increasing various 180-day products to 8.1 per cent.

Interest rate movements supplied by InfoChoice.