Westpac the last of the big four to cut

Westpac has today dropped the interest rate on its savings accounts; the last of the big four banks to pass on cuts to savers this month. 

Westpac has cut bonus rates by 0.25 per cent on the eSaver and Life accounts, while cutting the base rates by 0.05 per cent and 0.15 per cent, respectively.

The changes have been made across the Westpac Group, including St George, Bank of Melbourne and BankSA, all of which have cut bonus rates by up to 0.25 per cent.

Westpac savings rate changes

Note: The bonus interest rate is for the first 5 months.

Note: To earn the maximum rate on this account the balance must be higher at the end of each month than the beginning. The max rates include the bonus and base interest rates.

Last Friday, ANZ and NAB both cut their bonus savings rates by 0.25 per cent, leaving base rates unchanged.

The week before, CBA lowered the base rate on its Net Saver account by 0.05 per cent, and made cuts of up to 0.35 per cent on its bonus savings rates.

In total, 48 banks have dropped savings rates since the RBA cut the cash rate on 1 October.

State of play – big four conditional savings accounts

These accounts require you to meet certain terms and conditions, such as one deposit a month and no withdrawals, in order to qualify for the bonus interest that month.

Source: RateCity.com.au.

Note: The max rate includes the bonus and base interest rates. The rates are based on balances less than $50,000. CBA offers higher rates for larger deposits.

State of play – big four standard savings accounts

These accounts typically include an introductory period which offers bonus interest for several months, before dropping to a low ongoing rate.

Source: RateCity.com.au

Note: The intro rate periods are as follows: CBA 5 mths, Westpac 5 mnths, NAB 4 mths, ANZ 3 mths.

Sally Tindall, research director at RateCity.com.au, said people with conditional savings accounts would be hurt the most by the cuts.

“Earnest savers have borne the brunt of this round of rate cuts, with all four of the big banks slashing their conditional saver rates by 0.25 per cent,” she said. 

“Meanwhile, big four customers with a standard savings account have come out relatively unscathed, largely because their ongoing rates are already 0.11 per cent or less.

“There are still savings rates as high as 2.25 per cent, so it’s worth shopping around.

“But with another RBA cut looming, savers should expect rates to fall further,” she said.

Highest conditional savings rates on RateCity.com.au

Notes: excludes kids savers and introductory rates.

*The interest rate offered by MyState Bank is currently 2.50%, but will change to 2.25% on 1 November.

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