Which banks have cut savings rates following the March RBA decision?

The first RBA rate cut of the year is behind us, and already we’ve seen plenty of activity on the home loan front. But while reductions to official interest rates come as good news for mortgage holders, they’re less likely to be appreciated by the nation’s savers.
That’s because when banks make cuts to home loan rates, cuts to savings accounts usually follow. And with so many banks opting to reduce home loan rates by 0.25% this month, anyone who relies on interest on their savings for income has little to be optimistic about.
How have the big banks responded?
Among the major banks, Commonwealth Bank was the first to budge. Less than a week after we received word it will be slashing home loan rates by 0.25%, the big bank announced it will be cutting savings rates in kind.
Ongoing interest rates for the CommBank GoalSaver Account will now sit at 0.65% p.a. for balances less than $50,000, and 1.00% p.a. for balances between $50,000 and $249,000.
UBank, ING and ME also make cuts
A few days after the RBA’s decision, UBank announced it will be making cuts to its range of deposits. On 9 March, base rates for the Personal USaver, USaver SMSF and USaver Reach dropped by 0.25%.
That means the maximum rate customers will receive when pairing the USaver with the Ultra Transaction Account now sits at 1.85% p.a., assuming account holders meet the monthly bonus rate criteria.
According to UBank, the decision aims to “strike the right balance between delivering great value to our customers, responding to changing marketing conditions and managing our business sustainably.”
Elsewhere, ING has moved to cut rates for its Savings Accelerator and Business Optimiser by 0.25%. The Savings Accelerator will now offer rates of 0.75% on balances between $50,000 and $150,000, and 1.25% p.a. on balances above $150,000.
Citi was also among the first wave of banks to cut rates, slashing ongoing rates for its Online Saver account by 0.25%. As of 6 March, it will come with a 2.05% p.a. introductory rate, which lasts for four months before reverting to 0.60% p.a.
Rounding out the list are RaboBank and ME. RaboBank’s High Interest Savings Account will drop 0.25%, while its SMSF accounts will see larger reductions of 0.35%.
Meanwhile, base rates for the ME Online Savings Account will drop from 0.35% to 0.10% p.a. That brings the maximum rate savers can earn (by making at least four tap and go payments each month) down to 1.80% p.a.
Xinja keeps rates unchanged, halts customer inflow
Neobank Xinja raised a few eyebrows when it announced it won’t be dropping rates for its Stash savings account, but will be halting onboarding of all new customers for the time being.
CEO Eric Wilson said the decision to pause new accounts was the bank’s way of prioritising existing customers, who will continue to receive market leading rates of 2.25% p.a.
“When faced with higher than expected deposit flows, and an RBA rate cut, most banks would just drop deposit interest rates, hurting existing customers while chasing new ones. That’s not what Xinja is about,” he said.
Who offers the highest savings account rates?
While we’re still waiting on decisions from most banks to come through, it’s worth taking a look at where rates currently sit. Below are the top five best value savings accounts in our database at the time of writing.
Bank | Maximum rate | Account | Conditions |
---|---|---|---|
86 400 | 2.25% p.a. | Save Account | Deposit $1,000+ per month |
Up | 2.25% p.a. | Saver Account | Make 5+ card purchases per month using a linked Up debit card |
Volt | 2.15% p.a. | Savings Account | None |
BoQ | 2.00% p.a. | Fast Track Saver Account | Deposit $1,000+ and make 5+ eligible transactions with linked account |
Australian Unity | 2.00% p.a. | Active Saver | Deposit $250+ and make no withdrawals in the month |
If your bank has made cuts and you’re wondering how the new rates stack up against other accounts on the market, be sure to visit our savings account comparison page for an overview.
Savings account comparisons on Mozo - last updated 6 August 2022
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Save Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
2.35% p.a. (for $0 to $250,000)0.10% p.a.(for $0 and over)Yes up to $250,000Deposit at least $200 to either Spend or Save account from an external source each month.
Earn up to 1.85% p.a in interest. No monthly fee to pay. Split your money in up to 10 Save accounts. Track your progress on each of your save accounts. Instant access to cash via PayID and Osko. Deposits guaranteed up to $250k per customer.
CompareCompareSave Account
Earn up to 1.85% p.a in interest. No monthly fee to pay. Split your money in up to 10 Save accounts. Track your progress on each of your save accounts. Instant access to cash via PayID and Osko. Deposits guaranteed up to $250k per customer.
- Maximum rate
- 2.35% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Deposit at least $200 to either Spend or Save account from an external source each month.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Bank and saving account only accessible through iOS or Android app.
Read our Mozo Review to learn more about the Save Account
-
Mozo experts choice awards won:
- Best New Savings Account - 2022
Boost Saver with Go Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
2.30% p.a. (for $0 to $250,000)0.05% p.a.(for $0 and over)Yes up to $250,000Bonus rate of 2.30% is made up of the Base rate of 0.05% and Bonus rate of 2.25%. Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.
Enjoy a high interest savings account bundled with an everyday spending account. No monthly fees. And new customers can get a welcome bonus of 5,000 bonus Virgin Money Points (ends 31/08/22. Offer criteria & T&Cs apply).
CompareCompareBoost Saver with Go Account
Enjoy a high interest savings account bundled with an everyday spending account. No monthly fees. And new customers can get a welcome bonus of 5,000 bonus Virgin Money Points (ends 31/08/22. Offer criteria & T&Cs apply).
- Maximum rate
- 2.30% p.a. (for $0 to $250,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus interest 2.30% is made up of the Base rate of 0.05% and Bonus rate of 2.25%. It only applies when you deposit $2,000 into your Go Account and make 5 debit card purchases, direct debit or BPAY payments in the previous month. If you are between 18 and 25 you need to deposit $1,000 and fulfil the other criteria.
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Bank and savings account only accessible through iOS or Android app.
Read our Mozo Review to learn more about the Boost Saver with Go Account
-
Mozo experts choice awards won:
- Young Adult Savings - 2022
Life - 18-29 years old
Maximum rate
standard interest rate
Govt Deposit Guarantee
2.75% p.a. (for $0 to $30,000)0.65% p.a.(for $0 and over)Yes up to $250,000Make 5 card purchases/month with a Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.
Are you 18 - 29 years of age? Earn up to a generous 2.75% p.a. variable interest on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30k.
CompareCompareLife - 18-29 years old
Are you 18 - 29 years of age? Earn up to a generous 2.75% p.a. variable interest on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30k.
- Maximum rate
- 2.75% p.a. (for $0 to $30,000)
- standard interest rate
- 0.65% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Make 5 card purchases/month with a Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must hold a Westpac Choice transaction account. If 5 card purchases are made each month, but savings account balance hasnt increased, a 2.05% interest rate still applies.
Read our Mozo Review to learn more about the Life - 18-29 years old
-
Mozo experts choice awards won:
- Regular Saver - 2022
Bonus Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
2.10% p.a. (for $0 to $250,000)0.05% p.a.(for $0 and over)Yes up to $250,000Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.
Winner of a Mozo Experts Choice Award 2022 in the Regular Saver category. No monthly account fees. Available only on balances up to $250,000.
CompareCompareBonus Saver Account
Winner of a Mozo Experts Choice Award 2022 in the Regular Saver category. No monthly account fees. Available only on balances up to $250,000.
- Maximum rate
- 2.10% p.a. (for $0 to $250,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Bonus Saver Account
-
Grow Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.80% p.a. (for $0 and over)0.05% p.a.(for $0 and over)Yes up to $250,000Make at least 1 deposit per month and no more than 1 withdrawal, including internal transfers or external payments. Must enable the Lock Saver feature. 32 days notice for withdrawal and T&C's apply.
Pay no monthly fees. Set-up to 9 personalised savings accounts and choose to lock as many accounts as you like to earn the maximum variable interest rate. With just 32 days notice to access your money again, your future self will thank you.
CompareCompareGrow Saver
Pay no monthly fees. Set-up to 9 personalised savings accounts and choose to lock as many accounts as you like to earn the maximum variable interest rate. With just 32 days notice to access your money again, your future self will thank you.
- Maximum rate
- 1.80% p.a. (for $0 and over)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate is made up of the Base interest rate of 0.05%, Bonus interest rate of 1.45% and Notice interest rate of 0.30%. Make at least 1 deposit per month and no more than 1 withdrawal, including internal transfers or external payments. Must enable the Lock Saver Feature. 32 days notice for withdrawal and T&Cs apply.
- Access
- Minimum balance
- $0.00
- Other restrictions
- Savings account only accessible through iOS or Android app. Daily ATM withdrawal limit not applicable.
Read our Mozo Review to learn more about the Grow Saver
^See information about the Mozo Experts Choice Savings Account Awards
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