Basel III

[noddy]

End near for high-interest savings accounts?

The days of high-interest online saver accounts could be numbered, with new global banking standards expected to make the popular deposit products too expensive for Australia’s banks, a senior Reserve Bank official says.
The fastest growing form of savings account in recent years, online saver accounts such as those offered by National Australia Bank's UBank or ING Direct offer customers a range of incentives, including interest rates of 6 per cent or more.
They have often been used as the battleground in the deposit pricing war as banks attempt to outdo each other in raising funds.

The online accounts generally have no fees or a minimum balance requirement, but typically cannot be used to make payments other than to transfer funds to and from a transaction account. For banks they are cheaper to run than traditional deposit accounts.
But RBA assistant governor Guy Debelle said they could lose their lustre once new global liquidity standards - known as Basel III - are introduced in three years' time.
‘‘They will not be particularly attractive from a bank's point of view once those liquidity standards take effect from the beginning of 2015,’’ Dr Debelle said this morning.

i really hope this article is just fluffy predictions, im almost glad im not informed enough about the details to know otherwise.

[Simple Minded]

Noddy, I think it will come to pass. Lenders always determine interest rates, in the current zeitgeist, depositers are looking for return of captial, not return on capital. If you are a good credit risk, depositers will lend you money at 1%, rather than lend Greece money at 100%.

Look at low interest rates as an indicator of greater depositer confidence in the institution.