Which banks have cut savings account and term deposit rates after the October RBA cut?

Behind every Reserve Bank interest rate cut is a tale of two sides. 

On the one hand, mortgage holders across the country rejoice as lenders pass on cuts to  variable home loan rates. On the other, Aussies looking for a decent return on their savings wait with baited breath for news of cuts to their savings accounts or term deposits

And the RBA’s October decision is no different. 

Since the Reserve Bank took action on Tuesday afternoon by cutting the official cash rate from 1.00% to 0.75%, it’s fair to say that the majority of banks have been cautious, or totally silent, about savings account and term deposit cuts. 

In fact, as of the time writing, only a handful of banks have announced changes in response to the RBA cut, whereas a much larger group have already released details of cuts to home loans

However, it is worth noting that a number of lenders have also slashed rates since the July RBA cut, including ANZ and ING - perhaps pre-empting this weeks cut.  

Nonetheless, here’s what we know so far:

Citi, CommBank and ME first to cut savings account rates 

The Commonwealth Bank was first out of the blocks when it came to cutting home loan rates and, so far at least, they remain the only member of the big four to do the same to savings accounts. 

Both the GoalSaver (-0.25%) and NetBank Saver (-0.05%) accounts were impacted by the reductions which came into effect today.  

In a statement addressing the changes Angus Sullivan, Group Executive Retail Banking Services at the Commonwealth Bank, said that the bank needed to consider the needs of both savers and borrowers. 

“In balancing these interests, we have carefully considered how to best meet the needs of over 6 million savings customers – who may find it challenging to make ends meet with record low savings interest rates – with the needs of our 1.6 million home loan customers, who want to pay less on their mortgages,” he said. 

“In this environment, while reducing the SVR for home loan customers by between 0.13% p.a. and 0.25% p.a., we have also decided to limit the base rate reduction for savings customers in our popular NetBank Saver product to 0.05%.”

Elsewhere, ME announced a rate reduction to its popular Online Savings Account (-0.15%), with the online lender also citing the need to ‘strike a balance’ between the needs of savers and borrowers. 

The maximum interest rate on the account will fall from 2.35% to 2.20%, effective on October 8, though the Online Savings Account is still likely to remain as one of the highest maximum rates in the Mozo database.  

Citi also made a change to its Online Saver Account, with the bonus introductory rate reduced by 0.10% from 2.40% to 2.30% effective today. 

Savings account rates - October 4

Interested in looking at some of the best ongoing rates around for savers? 

While none of the banks in the table below have cut their maximum interest rates in response to the October RBA cut, here’s a snapshot of the top 5 maximum interest rates for bonus savings accounts currently in the Mozo database*.

Maximum RateAccountRate Requirement
BOQ2.50%Fast Track Saver AccountDeposit $1,000+ into a linked Day2Day Plus Account every month
MyState Bank2.50%Bonus Saver AccountDeposit $20+ and make five debit transactions every month
86 4002.50%Save AccountDeposit $1,000+ a month
Up2.50%Saver AccountMake 5+ card purchases per month using a linked Up debit card
UBank2.41%USaver with Ultra Transaction AccountDeposit $200+ into either savings or transaction account

Judo Bank still sitting pretty despite term deposit cuts  

The downward trajectory of term deposit rates hasn’t let up in recent months and Tuesday’s RBA cut looks set to ensure that the slide continues. 

Among the major changes that we’ve already seen since October 1, neobank Judo Bank opted to reduce interest rates on its Term Deposit 1 year terms by 0.25% and 2 year terms by 0.05%.

Despite the reduction Judo Bank still remains the rate leader in the Mozo database across a range of terms, with the bank currently offering a maximum rate of 2.25% for a three year term.          

Announcements have been few and far between from other banks, with Gateway Bank, GMCU, MyState Bank, QBank and Sydney Mutual Bank the only other banks to record term deposit changes. 

Term deposit rates - October 4

Keen to see just how competitive Judo Bank’s term deposit rates are? 

Well, here’s a snapshot of some of the top term deposit rates currently* in the Mozo database across a number of terms. 

TermCurrent RateOctober Cut
ME6 months2.05%Not yet
Judo Bank1 year2.15%-0.25%
Judo Bank2 years2.20%-0.05%
Judo Bank3 years2.25%0.05%
Judo Bank4 years2.10%Not yet
Judo Bank5 years2.10%Not yet

Ready to switch up your savings game by switching to a different savings account? Check out some of the hot savings account deals in the table below, or pay a visit to the Mozo savings account or term deposit comparison hubs for an even greater selection.  

*As of Friday October 4, 2019

Compare savings accounts - last updated 25 May 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
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^See information about the Mozo Experts Choice Savings Account Awards

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