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- CBA: Australia’s largest bank cuts interest rates on saving accounts
CBA: Australia’s largest bank cuts interest rates on saving accounts
The largest bank in Australia has reduced how much money people’s savings could earn in interest with an out-of-cycle cut.
Commonwealth Bank has cut interest rates by as much as 0.10 per cent on select Netbank Saver, Goal Saver and Youth Saver accounts.
The largest interest rate cut was made to its Youth Saver account, which dropped from 1.2 to 1.1 per cent.
Smaller 0.5 per cent cuts were made to the bank’s other savings products.
The Netbank Saver interest rate dropped from 1 per cent to its new rate of 0.95 per cent, while the rate on Goal Saver accounts with balances of at least $50,000 were cut to a 0.9 per cent.
Cuts to savings interest rates are typically tethered to fluctuations in the cash rate, but there’s been no changes since the Reserve Bank of Australia announced a record lower bound rate of 0.25 per cent in March.
CBA has cut the savings rates of its Netbank Saver and Youth Saver accounts three times since the cash rate was announced on March 20, by a total of 0.35 and 0.45 per cent respectively.
The largest bank in the market -- often a leading setter of trends – is not alone in cutting the interest rate on savings accounts.
A RateCity analysis found at least 46 banks had cut savings accounts in the last five weeks.
The big four banks had shaved savings interest rates by almost 1 per cent in the last year, when the cash rate dropped 0.75 per cent over the same period.
The average ongoing savings rates on the RateCity.com.au database -- assuming intro rates have expired and monthly terms and conditions are met -- is now just 0.60 per cent.
5.50%*
0.55%
*Deposit at least $1000, make 5+ card purchases...
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
- Linked account required
5.00%*
0.05%
*Deposit $20+ & make 5 purchases on a linked Ev...
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
- Linked account required
5.75%
intro 4 months then 4.40%
4.40%
Not applicable
- 2024 Award Winner
- Intro offer rate
- Online banking
5.25%
intro 4 months then 3.25%*
Not Applicable
*Deposit at least $50 and make and no withdrawa...
- Bonus interest with conditions
- Intro offer rate
- App banking
- Online banking
5.20%*
2.00%
*Make a deposit and make 5+ purchases on your W...
Westpac Life - 18 to 29 years old
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
- Linked account required
5.00%*
2.00%
*End the month with a higher balance and ensure...
Bump Account
- 2024 Award Winner
- Cashback
- Bonus interest with conditions
- App banking
- Online banking
- Linked account required
Disclaimer
This article is over two years old, last updated on August 20, 2020. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent savings accounts articles.
Compare savings accounts
5.75%
intro 4 months then 4.40%
4.40%
Not applicable
- 2024 Award Winner
- Intro offer rate
- Online banking
5.00%*
0.05%
*Deposit $20+ & make 5 purchases on a linked Ev...
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
- Linked account required
5.50%*
0.55%
*Deposit at least $1000, make 5+ card purchases...
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
- Linked account required
5.25%
intro 4 months then 3.25%*
Not Applicable
*Deposit at least $50 and make and no withdrawa...
- Bonus interest with conditions
- Intro offer rate
- App banking
- Online banking
Product database updated 18 Apr, 2024
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Promoted savings accounts
High Interest Savings Account
Real Time Rating™
Intro offer rate
Online banking
Maximum rate p.a.
5.75%
intro 4 months then 4.40%
Base rate p.a.
4.40%
Bonus Saver Account
Real Time Rating™
Bonus interest with conditions
App banking
Online banking
Linked account required
Maximum rate p.a.
5.00%*
Base rate p.a.
0.05%
Savings Maximiser
Real Time Rating™
Bonus interest with conditions
App banking
Online banking
Linked account required
Maximum rate p.a.
5.50%*
Base rate p.a.
0.55%
Reward Saver
Real Time Rating™
Bonus interest with conditions
Intro offer rate
App banking
Online banking
Maximum rate p.a.
5.25%
intro 4 months then 3.25%*
Base rate p.a.
Not Applicable
Product data updated on 18 Apr 2024