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.
^See information about the Mozo Experts Choice Savings Account Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.