Which banks have cut rates on savings accounts?
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
| Provider | Biggest cut | Product | New rate |
|---|---|---|---|
| AMP | -0.25% | Bett3r Account | 1.25% p.a. |
| Auswide Bank | -0.25% | Online Saver | 1.45% p.a. |
| Bank of Queensland | -0.25% | Fast Track Saver Account | 2.75% p.a. |
| BankVic | -0.15% | Easyinvest | 1.40% p.a. |
| The Capricornian | -0.25% | Everyday Saver | 0.45% p.a. |
| Citi | -0.25% | Ultimate Saver | 1.40% p.a. |
| Coastline Credit Union | -0.25% | eXtreme Saver | 1.55% p.a. |
| Commonwealth Bank | -0.31% | NetBank Saver | 2.20% p.a. |
| Defence Bank | -0.25% | iSaver | 0.50% p.a. |
| Greater Bank | -0.25% | Bonus Saver | 1.75% p.a. |
| Hunter United | -0.20% | XLR8 Savings Account | 1.80% p.a. |
| Macquarie | -0.25% | Cash Management Account | 1.05% p.a. |
| Macquarie Credit Union | -0.25% | Online Savings Account | 1.40% p.a. |
| ME | -0.25% | Online Savings Account | 1.05% p.a. |
| NAB | -0.25% | Cash Manager | 0.75% p.a. |
| nabtrade | -0.25% | High Interest Account | 1.25% p.a. |
| P&N Bank | -0.25% | Hi Saver | 1.00% p.a. |
| RACQ Bank | -0.25% | eSave Account | 1.40% p.a. |
| Suncorp | -0.30% | Growth Saver Account | 2.30% 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
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 $250,000Bonus 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.
CompareCompareBonus Saver Account
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category.^ No monthly account fees and no minimum balance requirements.
- 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 Everyday or Glide transaction accounts.
- Access
- BPay, 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
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 $250,000Minimum deposit of $200 and no withdrawals in the month.
Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.
CompareCompareHero Saver
Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.
- account fee per month
- $0.00
- Maximum rate conditions
- Minimum deposit of $200 and no withdrawals in the month.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Hero Saver
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 $250,000No 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.
CompareCompareSerious Saver
$0 monthly account fee. Link to any Australian bank account.
- account fee per month
- $0.00
- Maximum rate conditions
- No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.05% rate after*
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Serious Saver
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 $250,000Increase balance by at least $300 in the month
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
CompareCompareFlexi Saver
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
- account fee per month
- $0.00
- Maximum rate conditions
- Increase balance by at least $300 in the month (excluding interest)
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
Read our Mozo Review to learn more about the Flexi Saver
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 $250,000Bonus rate for the first 4 months from account opening
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
CompareCompareOnline Saver
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening
- 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 Online Saver
^See information about the Mozo Experts Choice Savings Accounts Awards
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