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Westpac cuts savings rates
Australia’s second largest bank, Westpac, has today cut its savings account rates by 0.05 per cent.
Westpac savings account rate changes
- Westpac’s eSaver introductory rate has been cut by 0.05% taking it to 1.00%.
- Westpac’s Life bonus rate has been cut by 0.05%. The maximum ongoing rate is now 1.00%.
- No cuts to ongoing and base savings rates.
| Westpac eSaver | Old rate | New rate | Difference |
| Intro rate (5 months) | 1.05% | 1.00% | -0.05% |
| Ongoing rate | 0.05% | 0.05% | No change |
| Westpac Life | Old rate | New rate | Difference |
| Max rate (if conditions met) | 1.05% | 1.00% | -0.05% |
| Base rate | 0.40% | 0.40% | No change |
Conditions for max ongoing rate: Balance needs to be higher every mth.
Analysis from RateCity shows almost 30 banks have cut at least one savings account rate this month, despite no move to the cash rate since March.
Seventy-seven (77) per cent of all savings accounts on the RateCity.com.au database have maximum rates under 1 per cent.
RateCity research director, Sally Tindall, said today’s changes from Westpac served as a good reminder for savers check their rate.
“Banks have been chipping away at savings rates since the emergency cash rate cut in March, on the back of sharper home loan rates and a drop in demand for deposits,” she said.
“While the ultra-low savings environment is likely to remain for the foreseeable future, savers shouldn’t just accept a rate below 1 per cent.
“There is competition in the savings market if you know where to look, with a handful of banks still offering ongoing rates of up to 1.85 per cent,” she said.
CONDITIONAL SAVINGS ACCOUNTS
Big four banks:
| Bank | Product | Base rate | Max rate | Conditions |
| CBA | Goal Saver | 0.10% | 0.50% | Deposit $200+/mth, no withdrawals |
| Westpac | Life | 0.40% | 1.00% | Balance needs to be higher every mth |
| NAB | Reward Saver | 0.05% | 1.00% | 1+ deposit and no withdrawals per mth |
| ANZ | Progress Saver | 0.01% | 0.85% | Deposit $10+/mth, no withdrawals |
Note: based on a balance of less than $50K. CBA has higher rates for higher balances.
Market leaders:
| Bank | Max rate | Base rate | Conditions for max rate |
| Bank of Queensland | 1.85% | 0.20% | Deposit $1k+ and 5+ purchases / mth on linked account |
| Up | 1.85% | 0.10% | Make 5+ purchases /mth via linked account |
| 86 400 | 1.85% | 0.25% | Deposit $1k+ per month |
Note: the savings accounts with the highest ongoing rates on RateCity.com.au
STANDARD SAVINGS ACCOUNTS
Big four banks:
| Bank | Product | Intro rate | Ongoing rate | Intro term |
| CBA | NetBank Saver | 1.05% | 0.05% | 5 mths |
| Westpac | eSaver | 1.00% | 0.05% | 5 mths |
| NAB | iSaver | 1.05% | 0.05% | 4 mths |
| ANZ | Online Saver | 0.80% | 0.05% | 3 mths |
Market leaders:
| Bank | Account | Intro rate | Intro term | Ongoing Rate |
| Macquarie Bank | Savings Account | 2.26% | 4 months | 1.35% |
| Rabobank | High Interest Savings | 2.25% | 4 months | 0.80% |
| AMP Bank | Saver Account | 2.20% | 6 months | 1.05% |
Note: the highest introductory rate savings accounts on RateCity.com.au.
Disclaimer
This article is over two years old, last updated on June 26, 2020. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent savings accounts articles.
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Product database updated 24 Apr, 2024
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