Login
ISCOVER
Staff Reporter
Competition between banks for deposits hasn’t stopped, with ME Bank tripling its customer deposit book to about $7 billion in the three years to April 2013.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
“ME Bank now has one of the fastest growing deposit books of any bank,” ME Bank’s chief executive Jamie McPhee said.
“Several channels have contributed to the growth of our deposit book, resulting in a highly diversified deposit balance sheet.”
In explaining the success of the bank's deposit strategy, Mr McPhee said ME Bank had worked hard to build a reputation for consistent and competitive deposit rates.
“One area where we’ve really appealed is the way we manage our maturing term deposit profile, taking a much fairer approach to the other banks.
“Sudden rate cuts of more than 2 per cent on term deposits is an unfair practice that many banks use to their own ends, giving them access to cheaper money at the expense of depositors who forget to check their rates at rollover.
“Being owned by some of Australia’s largest industry super funds, regulated by APRA, and having a government guarantee on deposits up to $250,000 has also underpinned our appeal.”
