Which banks have cut rates on savings accounts?

By Niko Iliakis ·

Since the RBA cut official interest rates last Tuesday, mortgage rates have been dropping like flies. So far, 34 providers have made reductions to their range of variable rate home loans, with 21 passing on the full 0.25% cut.

Of course, the flipside to all this is that rates for deposits are also set to drop. When banks make reductions to mortgage rates, cuts to savings accounts and term deposits usually follow as pressure to preserve profit margins mounts.

CommBank and NAB the first of the Big 4 to cut savings account rates

Following the RBA decision, the market has reacted by quietly taking the knife to savings accounts. Since last Tuesday, we’ve seen 19 providers make reductions to their at-call deposit rates.

Among the big banks, Commonwealth Bank and NAB were the first to make cuts. Just one week after announcing they would be slashing variable home loan rates by 0.25%, it looks like both will also be applying reductions to their range of deposits.

Interest rates for CommBank’s NetBank Saver now sit at 0.30% p.a., following a 0.20% reduction, while introductory rates dropped 0.31% down to 2.20% p.a. Meanwhile, the CommBank Goal Saver account saw cuts of between 0.20% and 0.30% across its three tiers.

NAB, on the other hand, made cuts of 0.25% to its Cash Manager account, leaving it at 0.75% p.a. As for its Reward Saver and iSaver accounts, both saw cuts of between 0.20% and 0.25% across both standard and special rates.

Savings rate cuts

ProviderBiggest cutProductNew rate
AMP-0.25%Bett3r Account1.25% p.a.
Auswide Bank-0.25%Online Saver1.45% p.a.
Bank of Queensland-0.25%Fast Track Saver Account2.75% p.a.
BankVic-0.15%Easyinvest1.40% p.a.
The Capricornian-0.25%Everyday Saver0.45% p.a.
Citi-0.25%Ultimate Saver1.40% p.a.
Coastline Credit Union-0.25%eXtreme Saver1.55% p.a.
Commonwealth Bank-0.31%NetBank Saver2.20% p.a.
Defence Bank-0.25%iSaver0.50% p.a.
Greater Bank-0.25%Bonus Saver1.75% p.a.
Hunter United-0.20%XLR8 Savings Account1.80% p.a.
Macquarie-0.25%Cash Management Account1.05% p.a.
Macquarie Credit Union-0.25%Online Savings Account1.40% p.a.
ME-0.25%Online Savings Account1.05% p.a.
NAB-0.25%Cash Manager0.75% p.a.
nabtrade-0.25%High Interest Account1.25% p.a.
P&N Bank-0.25%Hi Saver1.00% p.a.
RACQ Bank-0.25%eSave Account1.40% p.a.
Suncorp-0.30%Growth Saver Account2.30% p.a.

Dedicated savers might be looking at those numbers and worrying. Thankfully, there are still some savings accounts out there that offer rates in the high 2% range. For a look at what’s available, check out our savings account comparison page, or take a look at some quality options below.

Savings account comparisons on Mozo - last updated February 20, 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.
  • mini-meca-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.

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    Details
  • Hero Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.80% p.a. (for $0 to $250,001)
    0.01% p.a.(for $0 to $5,000,000)
    Yes up to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.

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    Details
  • Serious Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.80% p.a. (for $0 to $1,000,000)
    0.05% p.a.(for $0 and over)
    Yes up to $250,000

    No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.05% rate after*

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

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    Details
  • Flexi Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.75% p.a. (for $0 to $5,000,000)
    0.05% p.a.(for $0 to $5,000,000)
    Yes up to $250,000

    Increase balance by at least $300 in the month

    No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.

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    Details
  • Online Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.10% p.a. (for $0 to $500,000)
    0.35% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.

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    Details

^See information about the Mozo Experts Choice Savings Accounts Awards

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