Rabobank further cuts savings rates

The Dutch-owned online bank has cut the standard rate on its High Interest Savings Account by 0.10% p.a. to 4.00% p.a. on balances up to $250,000.

But its market-leading four-month introductory rate remains unchanged at 5.45% p.a.

It had been cut by 0.15% on 24 February, in the wake of the RBA cash rate decision, dropping it from 5.60% p.a.

Rabo has also cut the top interest rate offered on its conditional Premium Saver product, dropping it by 0.10% to 5.10% p.a. on balances up to $250,000.

This follows a 0.15% cut on 24 February, meaning the full 0.25% cash rate cut has now been passed on across two instances. 

To achieve the top rate on a Premium Savers account, customers must increase their account balance by $200 a month. 

These cuts were made effective from 11 March.

Notice Saver rates slashed

The biggest hit to Rabo’s savings rates has been on its Notice Saver accounts.

Their top interest rates have been dropped by another 0.15% after the full 0.25% RBA cash rate cut was passed on to customers on 24 February.

The new maximum rates for account balances up to $250,000 are as follows:

• 4.45% p.a. for 31 days notice period (down another 0.15% from 4.60% p.a. - was 4.85% p.a.)
• 4.50% p.a. for 60 days notice period (down another 0.15% from 4.65% p.a. - was 4.90% p.a.)
• 4.55% p.a. for 90 days notice period (down another 0.15% from 4.70% p.a. - was 4.95% p.a.)

Under Notice Saver conditions, customers can achieve the top interest rates by not accessing their funds for the stated time period.

SMSF savings rates also hit

Rabobank has also lowered the rates on its SMSF savings account products, most by between 0.10 and 0.20% p.a.

In a notice to its customers, Rabobank said it regularly reviews its rates and considers a number of factors, including movements in the official cash rate and changing market conditions. 

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