Hence movements in these rates can be one of the biggest short-run influences on changes in overall funding structure. While most of the competition among banks has been for term deposits, banks have also offered more attractive transaction and savings accounts. They are paying higher interest rates on these accounts and are offering greater functionality.
The increase in the value of funds invested in these deposits has largely been placed in online saver accounts and accounts with introductory bonuses and/or bonuses for regular deposits. Banks have reported little growth in the value of low-interest transaction-style deposit accounts.