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CBA cuts savings rates again as household deposits continue to rise

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 rateNew 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 rateDifference

0.65%

0.60%

-0.05%

Grow your balance each month for max rate.

CBA NetBank Saver

Old rateNew 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

BankAmountMonthly 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

BankAccountMax rate
INGSavings Maximiser

1.35%

MyState BankBonus Saver Account

1.20%

86 400Save Account

1.20%

ME BankOnline Savings Account

1.10%

UpSaver

1.10%

Source: RateCity.com.au. Data accurate as of 26.02.2021. Conditions apply for max interest rate.

Highest introductory savings rates

BankProductIntro rate (4 months)Ongoing rate
Rabobank AustraliaHigh Interest Savings Account

1.75%

0.30%

Heritage BankOnline Saver

1.30%

0.65%

Macquarie BankMacquarie Savings Account

1.10%

0.95%

CitiOnline Saver

1.10%

0.35%

Source: RateCity.com.au. Data accurate as of 26.02.2021.

Big four bank: conditional savings rates

BankAccountMax rate
CBAGoalSaver

0.35%

WestpacLife

0.40%

NABReward Saver

0.40%

ANZProgress Saver

0.40%

Source: RateCity.com.au. Data accurate as of 26.02.2021.

Big four banks standard savers

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

0.40%

0.05%

WestpaceSaver

0.40%

0.05%

NABiSaver

0.45%

0.05%

ANZOnline 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.

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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