With interest rates on savings accounts continuing to nose dive, a couple of the big 4 have decided to spare savers by not passing on the full rate cut.
So far, Commbank is the only bank of the big 4 to have officially announced its rate cut on savings accounts.
“We have carefully considered how to respond to this latest official interest rate cut, given that it is not possible to pass on the full rate reduction to over $160 billion of our deposits, including deposits where interest rates are at or already near zero. We have made a deliberate choice to limit the interest rate reduction to 0.15% p.a. on our most popular savings account, NetBank Saver,” Commbank’s Group Executive Retail Banking Services, Angus Sullivan said.
NAB has also addressed savings accounts and promised that it won’t pass the full cut, saying it’s a balancing act between benefiting home loan borrowers and assuring its customers who rely on income from deposits don’t lose out.
“For any changes to interest rates on savings accounts following today's RBA cash rate announcement, NAB will not decrease rates by more than 19 basis points,” NAB Chief Customer Officer Consumer Banking, Mike Baird said.
“Decisions like these are difficult and reflect the current unique circumstances, with home loan rates at record lows at the same time as deposit and savings rates also being at record lows.”
There has been no news from Westpac or ANZ about changes to their savings accounts interest rates yet, but cuts could come anytime soon.
This doesn’t mean you should just sit tight and wait for cuts to happen though, there are plenty of other places to stash your cash so here are some other value savings account options.