Rate cuts from 9 providers spell bad news for savers in 2017
With 2017 underway, Aussies who made a resolution to save more money are doing it tough so far, as Mozo’s data shows that a number of banks have already welcomed the New Year by cutting rates on savings accounts.
According to Mozo data, 9 providers have decreased base or bonus interest rates on savings accounts, including big players the Commonwealth Bank and St.George. A number of bonus rates were cut by a hefty 0.25%, while the steepest decrease in base rates was 0.15%.
Major changes to savings account bonus rates in January 2017
| Account | New bonus interest rate | Change | Bonus rate conditions |
|---|---|---|---|
| Bank Australia Bonus Saver | 2.60% | -0.20% | Minimum deposit of $100 and no withdrawals in the month. |
| Bank of Melbourne Maxi Saver | 2.75% | -0.25% | Bonus rate for the first 3 months |
| BankSA Maxi Saver | 2.75% | -0.25% | Bonus rate for the first 3 months from account opening. |
| Commonwealth Bank GoalSaver | 1.80% | -0.05% | Minimum deposit of $200 and one withdrawal in the month. |
| Commonwealth Bank NetBank Saver | 2.50% | -0.10% | Bonus rate for the first 3 months from account opening. |
| St.George Maxi Saver | 2.75% | -0.25% | Bonus rate for the first 3 months from account opening. |
“It’s bad news for savers,” said Mozo Product Data Manager, Peter Marshall. “And unless the RBA gives the official cash rate a considerable boost in the coming year, times could remain tough for those wanting to build a rainy day fund.”
In fact, 2017 is looking tough for savers allround, as earlier in the month, Mozo reported on falling term deposit rates as well, a trend Marshall also expected to continue.
RELATED: NAB and ANZ hit borrowers with fixed rate hikes - are more banks set to follow?
Bucking the trend of falling interest rates, however, is Hume Bank’s iSave account, which actually saw a 0.10% increase in both base and bonus rates in January.
“So it’s not all doom and gloom,” Marshall said. “For those willing to do their research and look for a better deal, there are still some decent returns to be made.”
Top 5 savings account ongoing bonus offers
- ME Online Savings Account - 3.05% (As long as you make a weekly Tap & Go purchase with the debit card linked to your ME Everyday Transaction Account)
- AMP Bett3r Save Account - 3.00% (Minimum deposit of $2,000 per month into linked Bett3r Pay Account)
- Australian Unity Active Saver - 3.00% (Minimum deposit of $250 and no withdrawals in the month)
- ING Direct Savings Maximiser - 3.00% (Minimum deposit of $1,000 into Orange Everyday account each month)
- RAMS Saver Account -3.00% (Minimum deposit of $200 and no withdrawals in the month)
If you’re not happy with the returns you’re earning on your savings, then why wait? Head over and compare savings accounts now to find a better place to park your stash.
^See information about the Mozo Experts Choice Savings Account Awards
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