Savings account snapshot: All the recent rate changes you’ll want to know about
To say March has been a busy month in the world of interest rates, particularly savings account rates, would be an understatement.
But with everything else going on we don’t blame you if your priorities have been elsewhere and you’ve missed some of the many changes that have come about as a result of two separate Reserve Bank interest rate cuts in March.
Unfortunately for savers, the bad news is that there’s been no let up in the savings account rate reductions we’ve been witnessing over the past year.
In fact, according to the latest figures from the Mozo database, the average ongoing interest rate for all savings accounts now sits at just 0.85%.
“Most banks have cut headline rates by 25bp, but there are a few that have made deeper cuts than that,” said Mozo Banking Expert, Peter Marshall.
“Cuts resulting from the first March RBA cash rate reduction have largely come through now, and we haven't seen many follow on from the second cut, but that's not to say they won't happen. Regardless, I expect at call deposit rates to continue to soften for a while.”
Keen to see the details? We’ve wrapped up some of the major changes in recent weeks below.
Introductory rate savings accounts
Refresher: An introductory rate attached to a savings account only applies for a limited time, generally 3-6 months, before it reverts to a lower, ongoing base (or standard) rate.
Snapshot
- AMP boosted Saver Account by 54 basis points
- Macquaire and AMP now offering joint highest intro rate
- Heritage Bank, Rabobank and Citi still competitive despite cuts
Perhaps the biggest savings account news in the past week was AMP’s decision to boost the maximum rate available on its Up Bank both reduced their respective maximum rates by 25 basis points in early March.
While the Volt Bank first reduced its rate by 25 basis points on March 13th and made a second cut this morning, meaning its rate has dropped from 2.15% to 1.65% in less than a month.
However, with fellow neobank Xinja’s decision earlier in March to freeze new savings customer intakes, the Volt Savings Account still remains the highest ongoing base rate available in the Mozo database.
Meanwhile, Macquarie Bank upped the base rate on its Savings Account by 100 basis points. As we mentioned further above, this account also features an introductory rate of 2.65% for the first four months on balances up to $250,000.
Ready to find a new home for your savings? Start your search by checking out the hot offers in the table below, or head on over to our savings account comparison hub for the latest rates from a range of banks.
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