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CBA shaves savings rates again after a year of micro-cuts
Australia’s largest bank, CBA, has today cut the rate on two of its popular savings accounts by up to 0.05 per cent.
CBA Netbank Saver
| Old rate | New rate | Change | |
| Total intro rate (5 mths) | 0.29% | 0.25% | -0.04% |
| Ongoing rate | 0.05% | 0.05% | 0.00% |
CBA Youthsaver
| Old rate | New rate | Change | |
| Max rate | 0.50% | 0.45% | -0.05% |
| Base rate | 0.05% | 0.05% | 0.00% |
Note: for max rate, balances must be below $50K and customers must grow balance each month.
To date in 2021, CBA has cut its Netbank Saver a total of six times, its GoalSaver account five times, and its Youthsaver account six times.
CBA savings rate cuts in 2021
| No. of cuts in 2021 | Max rate – 1 Jan | Max rate - today | Change | |
| Netbank Saver | 6 | 0.55% | 0.25% | -0.30% |
| GoalSaver | 5 | 0.50% | 0.25% | -0.25% |
| Youthsaver | 6 | 0.80% | 0.45% | -0.35% |
Note: GoalSaver rate from 1 Jan is for balances of $50K and over.
RateCity.com.au research director, Sally Tindall, said: “While today’s cuts from CBA are minor, they round out a year of micro-cuts from the banks, despite no move to the cash rate.”
“The problem for the banks is they’re packed to the rafters with cash. A lot of banks aren’t willing to post competitive savings rates because they don’t want to attract more money that they’ll then have to pay interest on,” she said.
The most recent APRA statistics for October show Australian households have a total of $1.21 trillion in the bank – an increase of $108 billion from the year prior and the highest amount on record.
“It’s been a bumper year for deposits. The pandemic has encouraged people to save for a rainy day and, for many people, low-cost lockdown living has helped facilitate this,” she said.
“While we might collectively have more money stashed in the bank than ever before, the savings are bittersweet because for many people they’re earning next to nothing in interest.
“Next year looks equally bleak for savers. The banks aren’t likely to move their rates north until the RBA hikes the cash rate, and at this stage that’s not expected until 2023.
“It’s still worth shopping around. Some banks are offering ongoing savings rates of over 1 percent, but they’re getting harder and harder to find,” she said.
Big four bank: conditional savings rates
| Bank | Account | Max rate |
| CBA | GoalSaver | 0.25% |
| Westpac | Life | 0.25% |
| NAB | Reward Saver | 0.25% |
| ANZ | Progress Saver | 0.20% |
Source: RateCity.com.au. Conditions apply for max rate.
Big four banks standard savers
| Bank | Product | Intro rate (3-5 mths) | Ongoing rate |
| CBA | NetBank Saver | 0.25% | 0.05% |
| Westpac | eSaver | 0.25% | 0.05% |
| NAB | iSaver | 0.30% | 0.05% |
| ANZ | Online Saver | 0.20% | 0.05% |
Source: RateCity.com.au. Intro rate terms - CBA & Westpac 5 months, NAB 4 months, ANZ 3 months.
Highest ongoing savings accounts (no age restrictions)
| Bank | Max rate |
| ING | 1.35% |
| Virgin Money | 1.20% |
| 86 400 | 1.20% |
Source: RateCity.com.au. Conditions apply for max interest rate.
Young Adults: highest ongoing savings rates
| Bank | Account | Max rate |
| Westpac Life | Ages 18 to 29 (up to $30K) | 2.50% |
| BOQ Fast Track Starter | Ages 14 to 24 (up to $10K) | 2.00% |
Source: RateCity.com.au. Conditions apply for max interest rate.
Disclaimer
This article is over two years old, last updated on December 15, 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 27 Apr, 2024
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