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
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.
Commonwealth Bank of Australia
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.
Also see: The different types of savings account interest rates
Other banks
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.
Bank First
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.
AMP Bank
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.
P&N Bank
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.
More to come
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Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.
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Denise Raward
