During the more than two years of high interest rates, Australians with cash sitting in term deposits have enjoyed relatively strong returns. However, with rate cuts now happening globally and probably on the way here, Australian banks are proactively lowering the interest they pay savers.

This has significant implications for the $1.4 trillion in savings held by Australians, many of them self-funded retirees, who rely on the steady income from this cash to fund their lifestyles.