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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.

Company
Product

Future Saver Account (Under 35)

Real Time Rating™

4.94

/ 5
Maximum rate

3.00%*

% p.a

Base rate

0.05

% p.a

Maximum monthly interest

$39

Real Time Rating™

4.94

/ 5
Go to site

Deposit $1000 minimum monthly deposit into your linked Everyday Account and make 5 or more eligible transactions.

Company
Product

Smart Saver Account

Real Time Rating™

4.30

/ 5
Maximum rate

2.00%*

% p.a

Base rate

0.05

% p.a

Maximum monthly interest

$26

Real Time Rating™

4.30

/ 5
Go to site

Deposit $1000 minimum monthly deposit into your linked Everyday Account and make 5 or more eligible transactions.

Company
Product

Online Saver

Real Time Rating™

3.60

/ 5

Winner of Best Standard Savings Account, RateCity Gold Awards 2022

Maximum rate

1.85

% p.a

intro 4 months then 1.10%

Base rate

1.10

% p.a

Maximum monthly interest

$14

Real Time Rating™

3.60

/ 5
Go to site

Winner of Best Standard Savings Account, RateCity Gold Awards 2022

Company
Product

AMP Saver Account

Real Time Rating™

3.72

/ 5

Winner of Best Savings Account Young Adults, Best Savings Account Regular Savers, RateCity Gold Awards 2022

Maximum rate

1.35%*

% p.a

Base rate

0.10

% p.a

Maximum monthly interest

$17

Real Time Rating™

3.72

/ 5
Go to site

Earn an ongoing total bonus variable rate of up to 1.35% per annum which will apply each month if you deposit $250 in the previous month. Available only on balances up to $250,000.

Winner of Best Savings Account Young Adults, Best Savings Account Regular Savers, RateCity Gold Awards 2022

Company
Product

Growth Saver Account

Real Time Rating™

3.55

/ 5
Maximum rate

1.10%*

% p.a

Base rate

0.10

% p.a

Maximum monthly interest

$14

Real Time Rating™

3.55

/ 5
Go to site

Bonus interest rate applied on balances up to $25,000 when the account holder makes a minimum deposit of $200 and no withdrawals within a calendar month. Otherwise base interest rate will apply

Company
Product

Macquarie Savings Account

Real Time Rating™

3.97

/ 5

Winner of Best Savings Account Regular Savers, Best Standard Savings Account, RateCity Gold Awards 2022

Maximum rate

1.80

% p.a

intro 4 months then 1.50%

Base rate

1.50

% p.a

Maximum monthly interest

$19

Real Time Rating™

3.97

/ 5
Go to site

Winner of Best Savings Account Regular Savers, Best Standard Savings Account, RateCity Gold Awards 2022

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This article was reviewed by Finance Writer Alison Cheung before it was published as part of RateCity's Fact Check process.

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