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Westpac cuts rates on popular savings accounts

Westpac cuts rates on popular savings accounts

12 Nov, 2021 - 3 min read

Australia’s second largest bank, Westpac, has today cut savings rates by 0.05 per cent.

Westpac Life changes

	Old rate	New rate	Change
Max rate	0.30%	0.25%	-0.05%
Base rate (if monthly conditions aren’t met)	0.15%	0.15%	0.00%

Note: customers must increase balance each month for max rate.

Westpac e-Saver changes

Old rate	New rate	Change
0.30% for 5 months then 0.05%	0.25% for 5 months then 0.05%	-0.05%

Westpac hasn’t touched its savings rate for young adults, which remains at a market-leading 2.50 per cent.

RateCity.com.au analysis shows:

Over 40 banks have cut at least one savings rate in the last two months including all four big banks.
0.29% is the average ongoing savings rate for all adults.
1.35% is the highest ongoing rate for all adults.
12 banks have an ongoing savings rate of 1 per cent or more.

Sally Tindall said: “These cuts from Westpac are not unexpected and follow the market which is still heading south.”

“In the last two months over 40 banks have trimmed savings rates despite no move to the cash rate in over a year,” she said.

“The problem for the banks is that they’re brimming with cash, as COVID has encouraged Australians to save for a rainy day.

“The latest APRA statistics show Australian households have $1.20 trillion in the bank, that’s up $108 billion from the same time last year.

“With deposits at a record high, most banks aren’t willing to offer up a decent savings rate,” she said.

Big four bank: conditional savings rates

Bank	Account	Max rate
CBA	GoalSaver	0.25%
Westpac	Life	0.25%
NAB	Reward Saver	0.25%
ANZ	Progress Saver	0.25%

Source: RateCity.com.au. Conditions apply for max rate.

Big four banks standard savers

Bank	Product	Intro rate (3-5 mths)	Ongoing rate
CBA	NetBank Saver	0.29%	0.05%
Westpac	eSaver	0.25%	0.05%
NAB	iSaver	0.30%	0.05%
ANZ	Online Saver	0.20%	0.05%

Source: RateCity.com.au Intro rate terms - CBA & Westpac 5 months, NAB 4 months, ANZ 3 months.

Highest ongoing savings accounts (no age restrictions)

Bank	Max rate
ING	1.35%
Virgin Money	1.50% for 3 mths then 1.20%
86 400	1.20%

Source: RateCity.com.au $25k balance. Conditions apply for max interest rate.

Young Adults: highest ongoing savings rates

Bank	Account	Max rate
Westpac Life	Ages 18 to 29 (up to $30K)	2.50%
BOQ Fast Track Starter	Ages 14 to 24 (up to $10K)	2.50%

Source: RateCity.com.au Conditions apply for max interest rate.

Disclaimer

This article is over two years old, last updated on November 12, 2021. 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 16 Jan, 2025

This article was reviewed by Janet Lee before it was published as part of RateCity's Fact Check process.

Liz Seatter

Senior Finance Writer

Previously a Senior Finance Writer with RateCity, Liz Seatter is an experienced journalist and producer with expertise across the wide media landscape. Her background has seen her covering finance, property, economics, current affairs, and world news since 2004, starting at Newstalk ZB radio in New Zealand, before migrating to Australia. For over a decade Liz has worked for some of Australia's biggest mastheads, including Sky News, Nine News, and heading up Nine’s weekend breakfast show, Today, before landing at RateCity.