The cut to the variable rate on Rabobank’s high interest savings account takes effect immediately, dropping the four-month introductory variable rate to 5.6% p.a. on balances up to $250,000.
After that time, the rate will revert to 4.35% p.a. and 3.4% p.a. for balances $250,001 and over.
The cut to the topline intro rate product comes mere weeks after the agrarian-focused bank cut rates on other savings products.
Rabobank’s online savings account is still offering the highest introductory rates on the market, 10 basis points higher than Macquarie Bank’s boosted 5.5% p.a. Savings Account welcome rate announced earlier this month for balances up to $250,000.
However, Macquarie’s revert rate of 5.0%, a 25-basis point jump on the old rate of 4.75% p.a., far outstrips Rabo’s 4.35% p.a.
Both accounts come with no monthly fees, minimum balance requirements, or deposit conditions.
In recent months, several banks offering similar rates on their high interest savings accounts have added conditions to receiving their highest or bonus rates.
ME Bank's 'Home ME' 5.55% p.a. is the highest ongoing rate in the market provided criteria is met.
Market movement
In an announcement to customers on Wednesday, Rabobank said it regularly reviewed its rates and considered a number of factors including movements in the official cash rate and changing market conditions.
The market expectation of a cash rate fall has lost steam in the past 24 hours, albeit from a low base.
The ASX rate tracker that calculates market expectations of an interest rate cut at the next RBA board meeting fell to 7% on Tuesday, down from 10% the previous day and 19% at the beginning of the month.
It means 93% of the market expects no change in the current 4.35% cash rate at the Melbourne Cup Day board meeting.
However, banks and lenders been positioning themselves for an anticipated cut to the cash rate for some time.
Term deposit rates have been plunging across the market for several months, as have fixed home loan rates.
Only Commonwealth Bank of Australia remains the outlier among the big four banks in sticking to a forecast rate cut in December while its peers are expecting the first cut will occur in February.
No change to other Rabobank savings products
Rabobank has announced no rate changes to its other savings products including its Notice Saver account and its Premium Saver Account.
The Notice account offers customers access to their savings after a required notice period while the Premium Account requires increasing the account balance by $200 a month to get its top interest rate.
Both products offer a higher top rate than the High Interest Savings Account’s base rate of 4.35% after the four-month introductory period.
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Looking for somewhere to stash your cash? The tables below feature some of the highest savings account rates on the market.
Denise Raward
Harry O'Sullivan
Alex Brewster
Staff Writers
