Interest rate rises create challenge

The common perception is that banks are quick to pass on borrowing rate hikes but slow to pass on rate increases to savings accounts.

It’s a subject of concern to many retirees who want the certainty of a regular income to fund their retirement, and to those who might be considering guaranteeing a mortgage for family members.

As the Australian Financial Review reported

Some higher saver rates go to new rather than existing savers; apply to only some of the bank’s accounts; only offer the biggest increases for short-term promotions; and are making increases off rock bottom amounts well below the inflation rate.