CBA steps up for savers – how the big four banks now stack up

CBA has today announced it will be passing on the full 0.25 percentage point hike to its variable mortgage customers, effective 17 November.

It is the last of the big four banks to announce its November RBA decision.

The bank will also increase all of its key savings accounts, effective 17 November. Both Goal Saver and YouthSaver accounts will increase by the full 0.25 percentage points, with new ongoing savings rates of 4.90 per cent and 5.00 per cent, respectively.

For Netbank Saver, the five-month introductory rate will rise by 0.35 percentage points, while the ongoing rate will increase by 0.15 percentage points.

NAB today also confirmed it will be increasing the introductory rate on its iSaver account by 0.25 percentage points, in addition to the savings increases it announced yesterday.

CBA’s lowest variable rates for new customers – effective 17 November

Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements apply.

CBA savings changes – effective 17 November

Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts.

STATE OF PLAY – how the big four banks now stack up

Home loans: big four banks’ new lowest advertised rate – post November hike

Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements apply.

Savings: what have each of the big four banks announced for existing customers?

Change %-pts

Source: RateCity.com.au.

Big four bank savings account rates – post November hike

Source: RateCity.com.au.

RateCity.com.au research director, Sally Tindall, said: “It’s fantastic to see a big bank like CBA hike rates on each of its key savings accounts.”

“Existing CBA savers will all see their rates rise by 0.25 percentage points, with the exception of Netbank Saver customers who will only get a 0.15 percentage point boost,” she said.

“This announcement from CBA puts pressure on other banks to pass on decent hikes to their savings customers. That said, Westpac and NAB will have the highest ongoing savings rates on offer from the big four banks, once these increases take effect, at 5.00 per cent.

“The one positive of a rising cash rate is that savers can now get a decent return on their hard-earned cash – an important benefit for those who rely on interest to help cover their monthly expenses. That said, millions of savers are falling short because they’ve got their cash sitting in the wrong account.

“If your bank isn’t offering an ongoing savings rate that’s well over 5 per cent, find one that will.

“As expected, all big four banks have announced they will be passing on the full cash rate hike to their variable mortgage customers.

“The return to cash rate rises, after four months of pauses, will rattle some borrowers who hoped the hikes were a thing of the past.

“While the extra money from this 13th hike is unlikely to start coming out of your bank account until the New Year, don’t use it as a reason to let your budget take a holiday over summer.

“This latest hike is likely to sink more borrowers into financial distress as they search for new ways to cut back when they’re already operating on the smell of an oily rag.

“If you can’t clear these new higher repayments, raise your hand and ask for help – from your bank, your mortgage broker, a financial counsellor, a charity organisation, or all of the above.

“So often people’s natural instinct is to go to ground, but if you’re struggling financially, now is not the time to suffer in silence,” she said.

Resources for people in financial stress:

• National Debt Helpline: 1800 007 007

• Good Shepherd no interest loans

• Services Australia Payment and Service Finder

State-based resources:

• Service Victoria Savings Finder

•  Service NSW Savings Finder

• Queensland Govt Concessions Finder

• SA Govt Concessions Finder

• Concessions WA

• Concessions NT

• Tasmanian Govt Discounts and Concessions

• ACT Savings Finder

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