banks slashing deposit rates to 1.5% or 2%

in anticipation of the big rate cut due next week...

***so much for holding cash....then you have to pay tax on the miserable earnings......pity the poor pensioner trying to live on his interest......

extract.........

THE MAJOR banks are aggressively repricing their deposit books ahead of next week's expected rate cut by the Reserve Bank.

With the political pressure mounting on all banks to pass on the full benefit of further easings of monetary policy, two of the major banks have taken drastic steps to protect their funding margins by slashing deposit rates.

From this morning, National Australia Bank will slash the rate it pays on three month fixed term deposits from 4.2 per cent to 2.1 per cent.

The NAB move comes after more aggressive repricing by Commonwealth Bank in recent weeks in which it slashed its three month fixed term deposit rate from 4.2 per cent to 1.5 per cent.


http://www.news.com.au/heraldsun/story/0,21985,25259667-664,00.html