Savings rates continue to tumble, despite no move to the cash rate, with NAB the most recent big four bank to cut its rates today by up to 0.10 per cent.
Australia’s fifth largest bank, ING, also dropped the maximum rate on its popular Savings Maximiser account today, while CBA cut the bonus rate on its GoalSaver earlier in the week for balances over $50,000.
- NAB iSaver: introductory rate cut by 0.10% to 0.95% (first 4 mths). Ongoing rate unchanged at 0.05%
- NAB Reward Saver: bonus rate cut by 0.10%. Max rate is now 0.90%.
- ING Savings Maximiser: max rate cut by 0.15%. Max rate is now 1.65%
- CBA GoalSaver: max rate cut by 0.05% for balances over $50K.
Analysis of the RateCity database shows that 64 per cent of banks have cut at least one savings rate in the last two months, despite no move to the cash rate since March.
RateCity research director, Sally Tindall, said banks will continue to chip away at deposit rates to help balance their books.
“Banks are feeling the heat at the other end of the equation where there is immense pressure to put competitive home loan rates on the table,” she said
“There’s little competition between the banks for deposits right now. As a result, banks can chip away at these rates, often without too much blowback.
“The exception here is Westpac. It’s offering 3 per cent on balances of up to $30,000 for anyone aged between 18 and 29.
“This is a remarkable offer from Westpac given the current environment. There’s daylight between this rate of 3 per cent and what’s on offer from its big four competitors,” she said.
Highest ongoing savings rates on the RateCity database
|Bank||Max rate||Base rate||Conditions for max rate|
|Australian Unity||1.75%||0.25%||Deposit $250+/mth and no withdrawals.|
|MyState Bank||1.75%||0.15%||Deposit $20+/mth and make 5+ purchases in linked account.|
|86 400||1.70%||0.25%||Deposit $1k+/mth in linked account|
Big four banks: highest ongoing savings rates
|Bank||Product||Base rate||Max rate||Conditions|
|Deposit $200+/mth, no withdrawals.|
|Westpac||Life (30 and over)||
|Balance needs to be higher every mth*|
|1+ deposit and no withdrawals per mth|
|Deposit $10+/mth, no withdrawals|
Note: based on a balance of less than $50K. CBA has higher rates for higher balances. For the Westpac Life account for 18-29 year olds you also need to make 5+ transactions on a linked transaction account.