CBA and Westpac cut savings rates on popular accounts

The Commonwealth Bank and Westpac have today cut rates on some of their most popular savings accounts.

CBA cut its introductory rate on the NetBank Saver and the bonus rate on the GoalSaver for balances over $50,000 – both by 0.05 per cent.

However, the biggest cut of 0.10 per cent was reserved for its Youthsaver account attached to the Dollarmites program.

CBA Youthsaver

CBA NetBank Saver

CBA GoalSaver

Deposit $200+ and make no withdrawals per mth for max rate.

The country’s second largest bank, Westpac, has cut many of its popular savings accounts by 0.15 per cent. However, the 3 per cent rate for savers aged 18-29-years-old remains unchanged.

Westpac subsidiaries St George, Bank of Melbourne and BankSA have also trimmed savings rates today.

Westpac Life

Balance must be higher at end of mth for max rate.

Westpac eSaver

Westpac Bump

Balance must be higher at end of mth for max rate.

RateCity.com.au database analysis

Analysis from RateCity.com.au shows since January 1 this year, 19 banks have cut savings rates, with the highest ongoing rate for all Australians now sitting at 1.35 per cent.

However, compared to this time last year, the average big four bank conditional savings rate has plunged by 0.93 per cent, significantly more than the RBA has cut the cash rate.

Savings rates changes in the last year

Source: RateCity.com.auRates are from January 22, 2020 and January 22, 2021.

RateCity.com.au research director, Sally Tindall, said: “These cuts are yet another blow for savers with Australia’s two largest banks.

“It’s particularly hard for kids in the Dollarmites program who have little choice than to stick with CBA if they want to keep banking at school.

“Right now, these children are earning just 0.70 per cent. On $500, that’s barely going to get them an ice cream each year,” she said.

“Today the average ongoing savings rate on our database is a measly 0.39 per cent, but if you’re prepared to shop around you could find a rate three times higher.

“The irony is, we’ve never had so much money in the bank. The latest APRA statistics show we’ve got almost $120 billion more in the bank than a year ago, as families move to build up their rainy-day funds.

“Banks are likely to keep chipping away at their rates, even if the cash rate stays the same. If you’ve got money in the bank, give your account a health check once every few months to make sure it’s still competitive.

“Young Australians are the exception – they can still earn rates of up to 3 per cent, if they know where to look,” she said.

Westpac is offering 3 per cent on balances up to $30,000 for anyone aged 18 – 29, while Bank of Queensland is offering 3 per cent for young Aussies aged between 14 and 24 but only on balances up to $10,000.

Highest conditional ongoing savings accounts on RateCity.com.au

(excludes accounts specifically for younger Australians)

Source: RateCity.com.au Conditions apply for max interest rate.

Big four banks conditional savings rates

Source: RateCity.com.au. Note rates are for balances over $50K.

Big four bank: standard savings rates

Source: RateCity.com.au

LATEST APRA STATS

Source: Deposit data fromAPRA monthly banking stats released Jan, 2021.

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