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CBA cuts savings rates again as household deposits continue to rise
Australia’s biggest bank, CBA, has today cut savings rates on its main accounts for the second time this month and the fifth time since the November cash rate cut.
Today’s cuts by CBA
CBA GoalSaver
| Old max rate | New max rate | Difference |
0.40% | 0.35% | -0.05% |
Deposit $200+ and make no withdrawals per month for max rate
CBA YouthSaver (Dollarmites)
| Old max rate | New max rate | Difference |
0.65% | 0.60% | -0.05% |
Grow your balance each month for max rate.
CBA NetBank Saver
| Old rate | New rate | Difference | |
| Intro rate (5 mths) | 0.45% | 0.40% | -0.05% |
| Ongoing rate | 0.05% | 0.05% | 0.0% |
RateCity research director, Sally Tindall, said CBA savers were getting hit with a series of micro cuts from the bank.
“Since the November 2020 cash rate cut, the bank has cut its two main accounts, the NetBank Saver and the GoalSaver, five times each,” she said.
“The cuts might be small, but they’re starting to add up. The maximum rate on the GoalSaver account has dropped by up to 0.40 per cent in just four months.
“Macquarie Bank, one of the leaders in savings rates, has today bowed to pressure, slashing its ongoing rate by 0.25 per cent to just 0.95 per cent.
“ING is still holding firm, with an ongoing rate of 1.35 per cent although they are tightening up the criteria to qualify for this rate, while Westpac is still offering 3 per cent for people aged 18 to 29,” she said.
RateCity’s database shows that since the start of the year, a total of 50 banks have cut over 170 different savings rates.
“The latest APRA statistics out today show that household deposits have increased by an incredible $125 billion over the last year, although the pace is starting to slow,” she said.
“While some of this extra cash is sitting in offset and transaction accounts, many Australians have squirrelled it away into savings accounts, making it increasingly challenging for banks to pay out decent returns.
“Interestingly, both CBA and Westpac’s total deposits from households took a step backwards this month, despite an overall rise across all banks – one indication people might be starting to shop around,” she said.
Value of deposits from households, APRA Monthly Banking Statistics
| Bank | Amount | Monthly change (Dec 20 - Jan 21) | Year-on-year change (Jan 20 - Jan 21) |
| Total (all ADI's) | $1.1 trillion | $275 million
(0.02% increase) | $125.0 billion
(12.65% increase) |
| CBA | $302.3 billion | -$272 million
(0.09% decrease) | $38.3 billion
(14.52% increase) |
| Westpac group | $232.3 billion | -$226 million
(0.10% decrease) | $15.0 billion
(6.92% increase) |
| NAB | $149.2 billion | $185 million
(0.12% increase) | $15.1 billion
(11.28% increase) |
| ANZ | $140.6 billion | $42 million
(0.03% increase) | $16.9 billion
(13.67% increase) |
Source: APRA, released 26 February, 2021.
Highest ongoing savings accounts on RateCity.com.au
| Bank | Account | Max rate |
| ING | Savings Maximiser | 1.35% |
| MyState Bank | Bonus Saver Account | 1.20% |
| 86 400 | Save Account | 1.20% |
| ME Bank | Online Savings Account | 1.10% |
| Up | Saver | 1.10% |
Source: RateCity.com.au. Data accurate as of 26.02.2021. Conditions apply for max interest rate.
Highest introductory savings rates
| Bank | Product | Intro rate (4 months) | Ongoing rate |
| Rabobank Australia | High Interest Savings Account | 1.75% | 0.30% |
| Heritage Bank | Online Saver | 1.30% | 0.65% |
| Macquarie Bank | Macquarie Savings Account | 1.10% | 0.95% |
| Citi | Online Saver | 1.10% | 0.35% |
Source: RateCity.com.au. Data accurate as of 26.02.2021.
Big four bank: conditional savings rates
| Bank | Account | Max rate |
| CBA | GoalSaver | 0.35% |
| Westpac | Life | 0.40% |
| NAB | Reward Saver | 0.40% |
| ANZ | Progress Saver | 0.40% |
Source: RateCity.com.au. Data accurate as of 26.02.2021.
Big four banks standard savers
| Bank | Product | Intro rate (3-5 mths) | Ongoing rate |
| CBA | NetBank Saver | 0.40% | 0.05% |
| Westpac | eSaver | 0.40% | 0.05% |
| NAB | iSaver | 0.45% | 0.05% |
| ANZ | Online Saver | 0.35% | 0.05% |
Source: RateCity.com.au. Data accurate as of 26.02.2021. Intro rate terms - CBA & Westpac 5 months, NAB 4 months, ANZ 3 months.
Disclaimer
This article is over two years old, last updated on February 26, 2021. 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.
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Product database updated 20 Apr, 2024
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