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Regular savers take the fall as CBA cuts bonus rates
Australia’s biggest bank, CBA, has today cut interest rates on some savings accounts by up to 0.30 per cent on the back of last week’s cut to the cash rate.
The bank has reduced the ongoing bonus rates on their Goal Saver account by 0.25 per cent, their pensioner security account by up to 0.25 per cent and their Youth Saver account by 0.30 per cent. The bank’s NetBank Saver account, which has an ongoing rate of just 0.10 per cent, remains unchanged.
The savings rate cuts come two weeks before the bank’s home loan changes come into effect.
CBA GOAL SAVER ACCOUNT
| Balance | Before | Now | Difference | |
| Under $50K | Max Rate | 0.90% | 0.65% | 0.25% |
| Base rate | 0.01% | 0.01% | - | |
| $50K-$249K | Max Rate | 1.25% | 1.00% | 0.25% |
| Base rate | 0.01% | 0.01% | - | |
| $250K - $999K | Max Rate | 1.60% | 1.35% | 0.25% |
| Base rate | 0.01% | 0.01% | - | |
| +1M | Max Rate | 0.01% | 0.01% | - |
| Base rate | N/A | N/A | N/A |
Conditions for max rate: deposit $200 or more and make no withdrawals per month.
YOUTH SAVER ACCOUNT
| Before | Now | Difference | |
| Max Rate | 1.85% | 1.55% | -0.30% |
| Base rate | 0.10% | 0.05% | -0.05% |
Conditions for max rate: at least one deposit and no withdrawals a month. Up to age 18.
RateCity.com.au research director Sally Tindall said regular savers will be impacted the most by these cuts, as the bank attempts to recoup some of the costs from their home loan cuts.
“Savers who go above and beyond to qualify for bonus interest deposits are going to be stung the most by these cuts,” she said.
“CBA is one of six banks so far to cut deposit rates since last week’s cash rate cut, with dozens more expected to follow.
“It’ll be interesting to see how far Westpac, NAB and ANZ shave their rates, seeing as they’ve already taken the knife to some of their savings rates this year.
“In this low rate environment, finding a savings rates above inflation can feel like finding a needle in a haystack, but they are out there.
“The highest rate on RateCity.com.au’s database is 2.25 per cent, on offer from neobanks 86 400, and Up, but these rates are unlikely to stick around,” she said.
Highest ongoing savings rates on RateCity.com.au
| Bank | Max rate | Conditions |
| 86 400 | 2.25% | Deposit $1K /mth |
| Up | 2.25% | 5 or more transactions on linked account |
| Bank of Queensland | 2.15% | Deposit $1K into linked accounts and make 5+ transactions |
Notes: excludes kids’ savers and introductory rates.
Big four bank conditional savings accounts
| Bank | Product | Base Rate | Max Rate | Conditions |
| CBA | Goal Saver | 0.01% | 0.65% | Mthly deposit of $200, no withdraw |
| Westpac | Life | 0.45% | 1.55% | Mthly deposit, account balance must have increased |
| NAB | Reward Saver | 0.11% | 1.50% | Mthly deposit, no withdraw |
| ANZ | Progress Saver | 0.01% | 1.60% | Min mthly deposit of $10, no withdraw |
Notes: Rates based on balances less than $50,000. CBA offers higher rates for larger deposits.
Disclaimer
This article is over two years old, last updated on March 9, 2020. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent savings accounts articles.
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Product database updated 28 Nov, 2024
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