The Reserve Bank of Australia has made its first cut to the cash rate in more than four years, dropping the rate by 25 basis points to 4.10%.
Prior to the cut, Australia's cash rate had seen 13 increases, putting mounting pressure on mortgage holders but reaping good returns for savers with many banks offering savings account rates above 5% p.a.
However, the RBA decision on 18 February sees the tide turn with deposit takers adjusting their savings account interest rates lower.
This page will detail the latest rate change announcements for savings accounts following the RBA's February decision. Check in regularly for all the latest rate movements.
The big banks
Westpac savings account rate cuts
Westpac was the first of the big four banks to adjust its savings rates. Its Life savings account with bonus interest will see a 25-basis point cut to 4.75% p.a., effective 28 February.
The standard variable base rate on the Westpac Life account has also dropped 25 basis points to 1.60% p.a.
Westpac's eSaver total variable rate with online bonus will decrease by 25 basis points to 4.75% p.a. for new customers applying online, effective 28 February.
The standard variable rate on the eSaver account will drop 10 basis points to 1.00% p.a. while the five-month introductory fixed rate will drop 15 basis points to 3.40% p.a. for new customers.
The online bonus variable rate of 0.35% p.a. for new customers opening accounts online remains unchanged.
St George Bank, Bank of Melbourne, BankSA
The Westpac stable of banks is cutting rates for its Incentive Saver and Maxi Saver accounts from 28 February.
The Incentive Saver total variable rate will be cut by 25 basis points to 4.90% p.a. for existing customers with account balances below $250,000. New customers with account balances below $250,000 will receive an online bonus of 0.10% p.a., taking their rate to 5.00% p.a.
For account balances over $250,000, the rate has been cut 25 basis points to 4.75% p.a. for existing customers. New customers will receive a 0.10% p.a. online bonus, taking their rate to 4.85% p.a.
The standard variable rate on the entire Incentive Saver account balance has also been cut 25 basis points to 1.60% p.a.
The Maxi Saver total variable rate for existing customers will be cut 25 basis points to 4.80% p.a. The online bonus 0.10% p.a. for new Maxi Saver customers will take the rate to 4.90% p.a.
The three-month introductory fixed rate will be cut by 15 basis points to 3.55% p.a. while the three-month online bonus rate will remain at 0.35% p.a.
The Maxi Saver standard variable rate will drop from 1.10% p.a. to 1.00% p.a.
Commonwealth Bank savings account rate cuts
CommBank will cut the variable introductory rate on its NetBank Saver account by 20 basis points to 4.90% p.a. The fixed bonus margin remains unchanged at 2.75% p.a. and the standard variable interest rate will also drop by 20 basis points to 2.15% p.a. The changes take effect on 28 February.
The bonus interest rate on CommBank's GoalSaver account will fall by 25 basis points to 4.65% p.a. The standard variable rate drops by five basis points to 0.35% p.a. and the bonus interest rate will be cut by 20 basis points to 4.30% p.a., effective 28 February.
NAB savings account rate cuts
On Friday 21 February, National Australia Bank dropped the top rate on its NAB Reward Saver account by 25 basis points to 4.75% p.a.
The variable base rate has taken the full 25- basis point hit, dropping to 0.10% p.a. from 0.35% p.a. The bonus rate will remain unchanged at 4.65% p.a. for balances up to $49,999.
To achieve the bonus rate, an account holder must make no withdrawals and at least one deposit during the month.
NAB's iSaver account sees its four-month introductory interest rate drop by 25 basis points to 4.75% p.a.
The base variable rate drops 25 basis points to 1.75% p.a. while the fixed rate margin for four months remains at 3%. After four months, the base variable rate of 1.75% will apply.
The iSaver account is available to customers who haven't held a NAB iSaver account in the last 12 months on balances up to $20 million.
ANZ savings account rate cuts
ANZ's digital-only, high interest ANZ Plus account will see a 25-basis point cut to its Save rate, taking it to 4.75% p.a. from 5.00% p.a., effective 28 February.
The cut consists of a 10-basis point cut to the base rate, taking it to 0.40% p.a. from 0.50% p.a., and a 15-basis point cut to the bonus rate, down to 4.35% p.a. from 4.50% p.a.
To achieve the bonus, ANZ Plus account holders must grow their balances by $100 or more per month.
Also see: The different types of savings account interest rates
Other banks
Macquarie Bank savings account rate cuts
Macquarie Bank has taken 25 basis points off both the variable welcome rate and the ongoing rate on its Savings account, as of 27 February.
The new four-month welcome rate falls to 5.10% p.a. (from 5.35% p.a.) on balances up to $250,000 while the ongoing rate is now 4.75% p.a. (down from 5.00% p.a.) on balances up to $1 million.
There are no monthly deposit conditions on Macquarie's savings account.
Bank of Queensland savings account rate cuts
Bank of Queensland has cut its top interest rate of 5.50% on its Future Saver account for 14-35-year-olds by 25 basis points to 5.25% p.a. for balances up to $50,000. (Conditions apply on achieving the top rate.)
The rate on its Smart Saver account for customers 36+ years of age also drops 25 basis points to 4.90% p.a., also on account balances up to $50,000 if bonus interest conditions are met.
BoQ's Simple Saver account, with no bonus interest conditions, remains unchanged at 4.55% p.a.
ME Bank
Other BoQ-owned banks have also followed suit on their savings products.
ME Bank has dropped its best bonus interest rate on its HomeME savings account by 25 basis points to 5.00% p.a. The HomeME account comes with conditions for achieving the top rate.
Virgin Money
The other bank in the Bank of Queensland stable has cut its top variable rate on its Boost Saver account, taking 35 basis points off from 5.35% p.a. to 5.00% p.a., with conditions.
The 35 basis points has come off the base (0.05%) and bonus interest rate (now 4.65% p.a.), dropping it to 4.70% p.a. (from 5.05% p.a.) when conditions are met.
The account's Lock Saver bonus, that allows account holders over 18 to lock their accounts and earn another 0.30% p.a. in interest, remains unchanged.
See also: Virgin Money pockets cash rate cut
ING savings account rate cuts
Savings account market leader ING will trim just 10 basis points off the highest rate for its Savings Maximiser account, dropping it to 5.40% p.a. from 5.50% p.a., effective 28 February.
The new rate is made up of a bolstered bonus rate of 5.35% p.a. for eligible customers - a 40-basis point boost to the old rate of 4.95% p.a.
At the same time, it's taken the knives to its base rate, slashing it by 50 basis points from 0.55% p.a. to 0.05% p.a.
To achieve the bonus rate, account holders must deposit at least $1,000 from an external source into any ING account in their name, make five or more ING card purchases, and grow their Maximiser account balance within a calendar month.
ING has also adjusted the rates on its Savings Accelerator account, effective 28 February.
Its Kick Starter offer total rates for the first four months will fall by 25 basis points, as follows:
- Balances $150,000-$500,000 - 5.15% p.a. variable
- Balances $50,000-$149,999.99 - 4.20% p.a. variable
- Balances $0-$49,999.99 - 3.30% p.a. variable
The rates include the variable kick starter rate of 0.70% which applies on top of the ongoing variable rate on balances up to $500,000 for four months.
The ongoing variable interest rates after the four-month period are as follows:
- Balances $150,000-$500,000 - 4.45% p.a. variable
- Balances $50,000-$149,999.99 - 3.50% p.a. variable
- Balances $0-$49,999.99 - 2.60% p.a. variable
ubank savings account rate cuts
The NAB-owned ubank is cutting the top interest rate on its high interest savings account from 5.50% p.a. to 5.25% p.a. for amounts up to $100,000, effective 1 March.
Save account balances over $100,000 up to $250,000 will earn 4.75% p.a., also down 25 basis points.
To get the top rates, Save account holders must deposit $500 or over per month into any ubank Spend, Bills, or Save accounts.
Rabobank savings account rate cuts
Rabobank has cut the four-month introductory rate on its High Interest savings account by 15 basis points to 5.45% p.a.
The rate applies to balances up to $250,000 and reverts to a standard variable rate of 4.10% p.a. after four months.
Also, Rabobank's Premium Saver account is now offering 5.20% p.a. on balances up to $250,000, also down 15 basis points.
AMP Bank savings account rate cuts
AMP Bank is reducing variable interest rates by 25 basis points across the range of its savings accounts (as well as its business and SMSF deposit products), effective 21 February for all customers.
AMP Saver will see a 25-basis point cut to its standard variable rate from 1.00% p.a. to 0.75% p.a. There is no change to the 4.20% p.a. bonus rate at this stage (payable on balances up to $500,000.) This means the top rate on AMP Saver will be 4.95% p.a.
AMP Cash Manager accounts will also undergo a 25-basis point cut on variable rates for balances between $10,000.01 to $5 million. The rate for balances between $10,000.01 to $250,000 will drop to 4.75% p.a. while balances between $250,000.01 and $5 million will pay 4.10% p.a. in interest.
Bank First savings account rate cuts
Interest rates on a range of savings products will be cut by up to 25 basis points p.a. on 1 March.
The bonus interest rate on the Bonus Saver account and First Home Bonus Saver account will drop by 25 basis points on 1 March.
New interest rates will be displayed on 27 February through Internet Banking and the Bank First app in the transaction listing for savings accounts.
P&N Bank savings account rate cuts
P&N Bank is cutting the bonus rate on its SwiftSaver account by 25 basis points to 4.20% p.a. for balances up to $250,000. The standard rate of 0.05% p.a. remains unchanged. The cut takes effect from 1 March.
The Hi Saver account will have its standard rate reduced by 25 basis points to 0.25% p.a. while the bonus rate will remain unchanged at 4.50% p.a., effective 5 March.
P&N's Way Cool Saver account, designed for savers up to 15-years-old, will also see a 25-basis point cut to 2.80% p.a. for balances under $5,000, effective 5 March. On amounts over $5,000, the interest rate remains at 0.00% p.a.
There will also be cuts to P&N's legacy savings products.
Qudos Bank savings account rate cuts
Interest rates will be cut by 25 basis point on all variable deposit products, including Qudos' Bonus Saver, from 27 February.
The top Bonus Saver account rate will drop to 4.50% p.a. The bonus rate, when conditions are met, will see a 25-basis point cut to 4.45% p.a. while the base rate of 0.05% p.a. will remain unchanged.
Other products seeing the rate drop include QSaver, Qantas Points Saver, DIY Super Saver (bonus rate only), RSA, and Cash Management account.
Up savings account rate cuts
Up will cut the bonus interest rate for Up Savers (individuals) and 2Up Savers (shared) accounts by 25 basis points to 4.10% p.a., effective 1 March.
The base interest rate on the accounts is nil. To qualify for the bonus interest rate each month, account holders must make five completed purchases on an Up or 2Up debit card, or other digital wallets in the same month.
The bonus is paid on balances up to $1 million.
Great Southern Bank savings account rate cuts
Great Southern Bank has dropped the interest rates offered on the range of its savings accounts as follows:
- The top rate on Home Saver has dropped to 5.00% p.a. with the base rate of 0.50% p.a. remaining and the bonus rate cut by 25 basis points to 4.50% p.a.
- The rate on the Everyday Saver account falls to 4.05% p.a. from 4.30% p.a. on balances up to $750,000
- The Goal Saver (for 18-24-year-olds) top rate falls from 5.35% p.a. to 5.10% p.a. with the base rate of 0.5% p.a. remaining the same and the bonus rate falling 25 basis points to 4.60% p.a.
- The Youth eSaver for children up to 17 has dropped its rate by 25 basis points to 5.25% p.a. on balances up to $5,000
- The top rate on the Future Saver, for those 18+, drops to 4.60% p.a. with a base rate of 0.10% p.a. and the bonus rate falling by 25 basis points to 4.50% p.a. on balances up to $500,000
Bank of Us savings account rate cuts
Bank of Us will be lowering the interest rates on its savings products by 25 basis points, effective 1 March.
The bank said customers will be notified by email on details of the changes.
Greater Bank savings account rate cuts
Greater Bank has dropped the interest rate on its Bonus Saver account by 25 basis points to 3.75% p.a.
To qualify for the rate, account holders must make at least one deposit into the account in a calendar month and no withdrawals. If they fail to meet the condition, no interest is paid.
The rate on the Life Saver savings account for under 25s has also fallen by 25 basis points to 4.50% p.a. from 4.75% p.a.
Balances must grow each month to qualify for an interest payment.
MyState Bank savings account rate cuts
MyState Bank's maximum interest rate on its Bonus Saver account will be cut by 25 basis points to 4.75% p.a., effective 28 February.
Defence Bank savings account rate cuts
Defence Bank has announced cuts to a range of its deposit products, with the changes effective 4 March.
The bonus rate on the Max eSaver savings account will fall by 20 basis points to 4.90% p.a., with the top rate available dropping to 5.00% p.a.
The Salute base variable rate will be cut by 25 basis points to 3.75% p.a., giving a total rate of 5.25% p.a. for new accounts.
The iSaver base variable rate will fall by 25 basis points to 1.00% p.a., giving a top rate of 5.15% p.a. for new accounts.
All Pension Saver tiered rates will drop by 25 basis points while standard variable rates on junior accounts will fall by 25 basis points to 4.75% p.a.
Move Bank savings account rate cuts
Move Bank has cut the bonus rate on it highest interest earning Growth Saver account by 25 basis points, taking it to 5.25% p.a. on balances up to $25,000.
To achieve the top rate, account holders must deposit $200 a month and make no withdrawals.
The base rate remains at 0.10% p.a.
More to come
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