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Second cut in a month for Dollarmite savers

Second cut in a month for Dollarmite savers

Australia’s largest bank, CBA, has today cut two of its most popular savings accounts for the second time in a month.

The Youthsaver account (Dollarmites) has been shaved by 0.05 per cent, to a maximum rate of 1.05 per cent, while the introductory rate on the Netbank Saver has been cut by 0.05 per cent to 0.90 per cent.

The Commonwealth Bank last cut these accounts on August 20 – the Youthsaver by 0.10 per cent and its Netbank Saver by 0.05 per cent.

Across the board, savings rates have been plummeting with banks making out of cycle cuts.

RateCity analysis shows in the last month:

  • More than 40 banks cut saving account rates, including CBA, Westpac, Macquarie Bank and AMP.
  • Average cut was 0.17 per cent.
  • Average ongoing savings rates is now 0.56 per cent.

Big four banks: Standard Accounts

BankProductIntro rate Ongoing rateIntro term
CBANetBank Saver

0.90%

0.05%

5 mths
WestpaceSaver

0.85%

0.05%

5 mths
NABiSaver

0.95%

0.05%

4 mths
ANZOnline Saver

0.80%

0.05%

3 mths

Source: RateCity.com.au

Big four banks: Kids Accounts

BankAccountMax rateConditions for max rate
CBAYouthsaver1.05%Make at least 1 deposit & no withdrawals per mth
WestpacBump account1.10%Make sure balance is higher at the end of the mth
NABN/A
ANZProgress Saver0.85%Deposit $10+ and no withdrawals per mth

Source: RateCity.com.au

Highest ongoing savings rates on RateCity.com.au

BankMax rateConditions for max rate
ING1.65%Deposit pay of $1,000+ and make 5+ card transactions per month
MyState Bank1.65%Deposit $20+/mth and make 5+ purchases in linked account
UBank1.60%Deposit $200+/mth into a linked account
Move Bank1.60%Deposit $200+/mth and no withdrawals
86 4001.60%Deposit $1000+/mth into a linked account
Up1.60%5+ card purchases from linked account
Source: RateCity.com.au Excludes accounts with age restrictions.

RateCity research director Sally Tindall said; “The news just keeps getting worse for kids in the Dollarmite program looking to earn interest on their pocket money.

“Hundreds of thousands of kids around the country will, once again, be earning less interest on their money,” she said.

“It’s a hard lesson to learn but it’s the reality of a low rate environment – most kids savers have taken a battering over the last six months.

“With the Dollarmite program still on pause for some schools, now is a great time for parents to take stock of their child’s savings account.

“One of the few standouts remaining is CUA’s kids account, which is still offering a rate of up to 3 per cent for balances under $5,000. That’s almost three times higher than CBA’s Youthsaver rate,” she said.

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This article was reviewed by Senior Finance Writer Liz Seatter before it was published as part of RateCity's Fact Check process.

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