Australia’s second largest bank, Westpac, has this afternoon announced it will cut savings rates between 0.05 and 0.25 per cent, effective from Tuesday next week.
Analysis from RateCity.com.au shows that since the March 3 cash rate announcement, almost 30 banks have cut savings rates, including CBA on Monday, and both NAB and ANZ earlier today.
Former market leader 86 400 has also cut its rate today from 2.25 per cent down to 2 per cent.
Westpac cuts – effective Tuesday 17 March
|Intro Rate (5 mths)||1.55%||1.30%||0.25%|
Conditions for max rate: balance must increase each month.
RateCity research director Sally Tindall said these savings cuts were inevitable, as the big banks attempt to recoup some of the costs of passing on the full 0.25 per cent cut to home loan customers.
“Even after these savings rate cuts, the big banks are likely to be taking a hit after passing on the full cut to mortgage holders,” she said.
“It’s a grim outlook for Australian savers, many of whom are now earning just 0.05 per cent interest on their cash.
“While there are still a handful of savings rates still offering rates above inflation, the chances of them sticking around are low, especially with another cash rate cut likely,” she said.