CBA slashes savings rates on the back of the RBA cut

CBA slashes savings rates on the back of the RBA cut

The Commonwealth Bank has today cut rates on its popular savings, retirement and term deposit accounts, following last week’s cash rate cut.

The move comes as a blow to hundreds of thousands of Australians with savings in the nation’s largest bank. Over a quarter of household deposits are with the Commonwealth Bank, according to the latest APRA statistics.

CBA NetBank saver

  Before Today Difference
Intro Rate (5 mths) 0.75% 0.60% -0.15%
Ongoing rate 0.05% 0.05% 0%

 CBA Goal Saver account

Balance Max rate – before Max rate – today Difference
Under $50K 0.50% 0.45% -0.05%
Over $50K 0.75% 0.55% -0.20%
Deposit $200+ and make no withdrawals per mth for max rate. Today’s changes include a 0.05% cut to the base rate down to 0.05%.

CBA Youthsaver (part of Dollarmites)

Balance Max rate – before Max rate – today Difference
Under $50K 1.00% 0.80% -0.20%
Over $50K 0.10% 0.05% -0.05%
Make at least one deposit and no withdrawals per mth for max rate. Base rate if terms not met is 0.05% (cut of 0.05%)

RateCity.com.au analysis shows a total of 13 banks have cut at least one savings rate since the November 3 cash rate cut.

RateCity.com.au research director, Sally Tindall, said the cuts came at a time when many Australians were focused on saving for a rainy day.

“Hundreds of thousands of Australians will wake to the news this morning that their rate has been hacked by Australia’s biggest bank,” she said.

“This is disappointing news from CBA, but by no means surprising. The bank has, at least, resisted cutting its base rates down to zero.

“Savings rates might be at all time lows but that doesn’t mean people should just throw their hands up in the air.

“There are still banks out there offering rates over 1.30 per cent. It might not seem like much but it’s well above the 0.05 per cent the big banks are offering some savers.

“You’ve got to feel for the kids enlisted into CBA’s school banking program. They might be getting access to fun games and rewards, but on their savings they’re now getting a maximum of just 0.80 per cent.

“Our kids can do better than this,” she said.

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