Unfortunately for savers, recent futures contracts indicate that the Reserve Bank of Australia's next move with the cash rate may not be a hike, but actually a cut.
According to the AFR, recent economic data means a cash rate cut at the central bank's December meeting currently stands at 50-50.
If this proves accurate then it could be several years until interest rates on term deposits and savings accounts return to normal levels.
But don't worry because the Australian share market has a number of top income options that smash interest rates. Three to consider are as follows:
National Australia Bank Ltd (ASX: NAB)
Based on its last close price, National Australia Bank's shares currently provide investors with a trailing fully franked 8% dividend. In this low interest rate environment I think this yield is hard to say no to, especially with the bank's shares looking very attractive trading on historically low multiples.
National Storage REIT (ASX: NSR)
Another top option for income investors could be this leading self-storage provider. I believe National Storage is well-positioned to continue increasing its dividend at a solid rate over the coming years due to its hefty cash balance, growth through acquisition strategy, and increasing demand for its services. At present National Storage's shares offer a trailing 5.4% distribution yield.
Rural Funds Group (ASX: RFF)
One of my favourite income shares on the Australian share market is this real estate property trust. Rural Funds is the owner of a growing portfolio of income generating rural properties across different geographies and industries. These properties have long-term tenancy agreements and rental indexation built into them, putting Rural Funds in a great position to continue increasing its distribution at a solid and predictable rate. Its units currently offer a trailing 4.6% yield.
