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.

BankMaximum rateAccountConditions
86 4002.25% p.a.Save AccountDeposit $1,000+ per month
Up2.25% p.a.Saver AccountMake 5+ card purchases per month using a linked Up debit card
Volt2.15% p.a.Savings AccountNone
BoQ2.00% p.a.Fast Track Saver AccountDeposit $1,000+ and make 5+ eligible transactions with linked account
Australian Unity2.00% p.a.Active SaverDeposit $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 - rates updated daily

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Boost Saver with Go Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.20% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    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 savings account bundled with a spending account. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Bonus Saver Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.20% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.

    Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.

    Go to site
    Details
  • placeholder
    Grow Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.65% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.

    Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.

    Go to site
    Details
  • placeholder
    Serious Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.30% p.a. (for $0 to $1,000,000)
    0.15% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate for first 3 months, reverting to 0.15% rate after

    $0 monthly account fee. Link to any Australian bank account.

    Go to site
    Details
  • placeholder
    Fast Track Saver Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.05% p.a. (for $1 to $250,000)
    0.05% p.a.(for $1 and over)
    Yes up to $250,000

    Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.

    Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.

    Go to site
    Details

^See information about the Mozo Experts Choice Savings Account Awards

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