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
|Bank||Product||Intro rate||Ongoing rate||Intro term|
Big four banks: Kids Accounts
|Bank||Account||Max rate||Conditions for max rate|
|CBA||Youthsaver||1.05%||Make at least 1 deposit & no withdrawals per mth|
|Westpac||Bump account||1.10%||Make sure balance is higher at the end of the mth|
|ANZ||Progress Saver||0.85%||Deposit $10+ and no withdrawals per mth|
Highest ongoing savings rates on RateCity.com.au
|Bank||Max rate||Conditions for max rate|
|ING||1.65%||Deposit pay of $1,000+ and make 5+ card transactions per month|
|MyState Bank||1.65%||Deposit $20+/mth and make 5+ purchases in linked account|
|UBank||1.60%||Deposit $200+/mth into a linked account|
|Move Bank||1.60%||Deposit $200+/mth and no withdrawals|
|86 400||1.60%||Deposit $1000+/mth into a linked account|
|Up||1.60%||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.