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CBA cuts popular savings rates for 7th time since the RBA cut

CBA cuts popular savings rates for 7th time since the RBA cut

Australia’s largest bank, CBA, has today cut rates on its popular savings accounts.

The RBA has not moved the cash rate since 3 November 2020, however, the bank has made seven cuts to its GoalSaver and NetBank Saver since then.

The latest savings account cuts

Savings accountOld max rateNew max rateChange
GoalSaver0.30%0.25%-0.05%
Youthsaver (under 18yrs)0.55%0.50%-0.05%
NetBank Saver0.33% for 5 months, then 0.05%0.29% for 5 months, then 0.05%-0.04% to intro rate

Note: To qualify for max rate for GoalSaver and YouthSaver balance must be higher at the end of the month.

Cuts since 1 November 2020, CBA vs cash rate

Max rate

1 Nov 2020

Max rate

today

Change
CBA GoalSaver0.75%0.25%-0.50%
CBA Youthsaver (under 18 yrs)1.00%0.50%-0.50%
CBA NetBank Saver0.75% (5 mths)0.29% (5 mths)-0.46% (intro rate only)
Cash rate0.25%0.10%-0.15%

Note: The max rate on the GoalSaver on 1 November was for balances of $50K and over. The rate for under $50K was 0.50%.

Savings account database analysis

  • 24 banks have cut at least one savings rate in the last month, including Westpac, ANZ and now CBA.
  • 0.30% is the average ongoing savings rate for adults.
  • 1.35% is the highest ongoing rate for all adults.
  • 12 banks still have an ongoing savings rate of 1 per cent or more.

Sally Tindall, RateCity.com.au research director, said: “Savers at Australia’s largest bank have seen their rates plummet this year, despite no move to the cash rate.”

“CBA has been slowly chipping away at the interest rates for savers, who are now only left with crumbs,” she said.

“Most savers need to look beyond the big four banks if they want to see their savings grow. The only exception is Westpac, with a market-leading rate of 2.50 per cent for young adults.”

RateCity.com.au database shows there are 12 banks offering ongoing savings rates of 1 per cent or more.

“Banks full to the brim with cash. The latest APRA statistics show there are $1.7 trillion in household deposits, that’s $99 billion more than a year ago.

“In the last month alone we’ve seen CBA, Westpac and ANZ shave savings rates, so it wouldn’t be a shock if NAB moved before Christmas,” she said.

Big four bank: conditional savings rates

BankAccountMax rate
CBAGoalSaver

0.25%

WestpacLife

0.30%

NABReward Saver

0.30%

ANZProgress Saver

0.25%

Note: Conditions apply for max rate.

Big four banks standard savers

BankProductIntro rate (3-5 mths)Ongoing rate
CBANetBank Saver

0.29%

0.05%

WestpaceSaver

0.30%

0.05%

NABiSaver

0.35%

0.05%

ANZOnline Saver

0.20%

0.05%

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

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