The bank has halved the ongoing rate on its Netbank savings account to 0.15% p.a. which has an introductory rate of 2.05% p.a. for the first five months.
The bank has also cut the bonus rate on its GoalSaver account for balances under $50,000 by 25 basis points from 1.39% p.a. to 1.14% p.a., with the base rate remaining at 0.01% p.a. (max rate of 1.15% p.a.).
To receive the bonus rate on this account, customers must deposit $200 a month and make no withdrawals.
The cuts, in response to the RBA’s July rate cut, were announced at the start of July.
In its 2 July statement, CBA Group Executive Angus Sullivan said the bank was looking to balance the effects of the rate cuts to savers and borrowers.
“We have carefully considered how to respond to this latest official interest rate cut, given that it is not possible to pass on the full rate reduction to over $160 billion of our deposits, including deposits where interest rates are at or already near zero,” Mr Sullivan said.
“We have made a deliberate choice to limit the interest rate reduction to 0.15% p.a. on our most popular savings account, NetBank Saver.”
The four major banks have all now cut their online flexible savings accounts by at least 39 basis points since the start of the year.
With inflation (1.3% p.a.) accounted for, those utilising these accounts are effectively losing 1.15% p.a. on their savings.
Last month Commonwealth Bank passed on the RBA’s June rate cut by the full 25 basis points on its savings accounts.
Who else has cut rates?
Westpac last week reduced the base interest rate on its ‘eSaver’ savings account by 15 basis points from 0.30% p.a. to 0.15% p.a.
This account has a maximum interest rate of 2.16% p.a. however, this is only an introductory rate for the first five months, reverting to 0.15% p.a. after this.
Westpac’s main savings account, Westpac Life is unchanged at a maximum interest rate of 2.10% p.a.
Earlier in the month ANZ and NAB announced changes to their main savings account products, with ANZ cutting rates this month by up to 25 basis points and NAB by 19.
Last week they both made similar changes to Westpac, dropping rates on their introductory accounts.
ANZ’s Online Saver, which has an introductory rate of 1.95% p.a. for the first three months, has had its base interest rate lowered by 15 basis points to 0.15% p.a.
NAB’s iSaver account meanwhile, with a maximum interest rate of 2.11% p.a. for the first four months, has seen its interest rate slashed by 19 basis points to just 0.11% p.a.
Outside of the big four, UBank cut interest rates on its savings accounts by 19 basis points last week, while earlier in the month, ING, ME and BOQ also slashed rates.