Depositors struggle to get five per cent

Retirees dependent upon their savings and people saving for a home deposit are the big losers from the yesterday's interest rate decision to cut one per cent from official interest rates.

A $50,000 deposit will earn no more than about 5% interest or $2,584 per year if the cut is passed on in full by banks and deposit taking institutions. The rate cut will not apply to existing term deposits.