According to the latest Westpac Banking Corp (ASX: WBC) Weekly economic report, the banking giant's economics team continues to forecast two cash rate cuts this year.
Westpac expects the central bank to make its first cut in August and the second in November, bringing the cash rate down to a record low of 1%.
In light of this, I suspect it could be years until rates return to normal levels again.
So in order to escape the low interest rates on offer from savings accounts and term deposits, I would suggest savers look at the large number of dividend shares trading on the ASX instead.
Three to consider buying this week are listed below:
Australia and New Zealand Banking Group (ASX: ANZ)
I would sooner invest in one of the big four banks than have my money gathering lower-than-inflation interest in their savings accounts. My top pick in the banking sector right now is ANZ due partly to its strong capital position. With its CET1 notably higher that APRA's target, I believe it has the balance sheet flexibility to consider more capital returns. ANZ's shares currently provide investors with a trailing fully franked 6.15% dividend yield.
Coles Group Ltd (ASX: COL)
This supermarket giant could also be a great way to beat low interest rates. With the company planning to pay out between 80% and 90% of its earnings as dividends, I believe it is a great option for income investors. Especially given its solid growth prospects thanks to its strong market position and its focus on automation. Whilst the latter will take considerable investment, it is expected to result in a material improvement in its margins. I estimate that its shares currently offer investors a fully franked forward 4.8% dividend.
Rural Funds Group (ASX: RFF)
This agriculture-focused real estate property trust is one of my favourite dividend shares on the ASX. I'm a big fan of Rural Funds due to its high-quality asset portfolio, long term leases, and use of rental indexation. All in all, I believe this has positioned the company perfectly to deliver solid distribution growth over the next decade. Its units currently offer income investors a 4.9% forward distribution yield.