Westpac group has today cut savings rates by up to 0.10 per cent even though the RBA left rates on hold last month.
Australia’s second largest bank now has a max savings rate of 1.91 per cent, for just five months.
Westpac rate changes
|Savings account||Old max rate||New max rate||Conditions|
|Life||1.95%||1.90%||Account balance must increase each mth|
|eSaver||2.01%||1.91%||Max rate only for first 5 months. Ongoing rate is 0.15%|
Westpac subsidiaries St George, Bank of Melbourne and Bank SA have also all shaved their savings account rates today also by up to 0.10 per cent.
Australians savers are facing tough conditions, with rates tumbling since the Reserve Bank made two back-to-back cash rate cuts in June and July.
There is strong speculation another rate cut will happen this year, which would likely result in more banks cutting interest rates for savers.
RateCity.com.au research director Sally Tindall said the banks didn’t have much more to cut before they hit zero.
“Savers who are used to being rewarded for making regular deposits will find that the bonus rates will start falling away if the RBA cuts again.
“If your bank has cut savings rates recently, its worth shopping around to find a better deal. Right now you can still find an ongoing rate of 2.50 per cent however this rate is unlikely to stick around for long,” she said.
Savings rates Big 4 banks vs market leaders
|Big 4 banks||Max rate||Conditions|
|CBA||1.15%||Mthly deposit of $200, no withdraw|
|Westpac||1.91%||Account bal must increase each mth|
|NAB||1.86%||Mthly deposit, no withdraw|
|ANZ||1.95%||Min mthly deposit of $10, no withdraw|
|Market leaders||Max rate||Conditions|
|MyState Bank||2.50%||Deposit of $20, 5 transactions|
|Up||2.50%||5 card purchases from everyday acct|
|86 400||2.50%||Deposit of $1000 in everyday acct|
|BOQ||2.50%||Deposit of $1000 in everyday acct|
Notes: Rates above are the banks’ highest ongoing rates. The rates are based on a balance of $25K. CBA offers higher rates for higher balance. Excludes kids accounts and introductory rates