Tough time for savers as the big four banks slash interest rates


Alex Ritchie

Alex Ritchie

Jun 26, 2019( 4 min read )

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ANZ is the last of the big four banks to cut their savings account rates, following the Reserve Bank’s decision to cut the cash rate earlier this month. 

ANZ today reduced the rates on their Progress Saver and Online Saver accounts by 0.20 per cent – 2 basis points more than they passed onto their home loan customers on 14 June 2019. 

As of today, ANZ still offers the highest ongoing savings rate out of the big four of 2.20 per cent, while Westpac offers the highest introductory rate of 2.31 per cent for a period of 5 months. 

RateCity.com.au research director Sally Tindall said: “Introductory rates have become the white elephant of banking.” 

“All four big banks have slashed their base rates to just 0.30 per cent interest, when inflation is sitting at 1.3 per cent. That’s a nightmare equation for anyone trying to save. 

Conditional rate savings changes: Big4 

Bank

Product

Max Rate  Pre RBA

Max Rate  Post RBA

Change

Conditions

CBA

GoalSaver

2.00%

1.70%

0.30%

Dep $200/mth, no withdraw, for bal $50K-$250K

Westpac

Life

2.30%

2.10%

0.20%

Make 1 dep/mth, balance higher at end of mth

NAB

Reward Saver

2.30%

2.05%

0.25%

1 dep/mth, no withdrawals

ANZ

Progress Saver

2.40%

2.20%

0.20%

Deposit $10/mth, no withdrawals

Intro rate savings changes: Big4 

Bank

Product

Base rate Pre-RBA

Max rate Pre RBA

Base rate Post RBA

Max rate Post RBA

Total change

Intro term

CBA

Netbank Saver

0.50%

2.51%

0.30%

2.20%

0.31%

5 mths

Westpac

eSaver

0.50%

2.51%

0.30%

2.31%

0.20%

5 mths

NAB

iSaver

0.50%

2.55%

0.30%

2.30%

0.25%

4 mths

ANZ

Online Saver

0.50%

2.30%

0.30%

2.10%

0.20%

3 mths

 RateCity.com.au data shows that over 47 banks have dropped their savings rates since the RBA cash rate cut on June 4, including ING, AMP, Bank of Queensland, ME, Suncorp and Bendigo, in addition to the big 4 banks. 

The average cut to savings account rates by banks who have moved is 0.23 per cent, while the maximum cut on the database is 0.50 per cent. As a result of all the changes, the average savings account rate on RateCity.com.au’s database is now 1.55 per cent*. 

“There’s no sugar coating the outlook for savers right now. With at least one, if not two more cuts to the cash rate on the horizon, the average saving rate could fall to 1.30 per cent. 

“Good saving rates might be hard to come by but it’s still worth shopping around,” she said. 

Market leading saving account rates

Account

Max rate

Conditions

UBank

2.87%

Mthly deposit of $200, no withdraw

BOQ

2.75%

Deposit $1K into linked trans a month

Endeavour Mutual Bank

2.75%

For people up to 35 years, monthly deposit of $400

ME Bank

2.60%

1 tap & go payment/wk with linked account

UBank has not cut this rate since the RBA cash rate change on June 4.  

Conditional rates:

These are savings accounts that require the customer to meet certain conditions every month in order to get the maximum rate of interest on an ongoing basis. 

Introductory rates

These are savings accounts where customers get a bonus interest rate for a short period of time when the account is first opened, typically between 3 and 5 months. 

*RateCity.com.au’s average savings rate excludes kids accounts and intro rates. Where conditions are required to get the maximum interest, it assumes these conditions are met.

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