RateCity.com.au
  1. Home
  2. Savings Accounts
  3. News
  4. Westpac cuts savings rates

Westpac cuts savings rates

Alex Ritchie avatar
Alex Ritchie
- 3 min read
article cover image

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

Westpac savings account rate changes

  • Westpac’s eSaver introductory rate has been cut by 0.05% taking it to 1.00%.
  • Westpac’s Life bonus rate has been cut by 0.05%. The maximum ongoing rate is now 1.00%.
  • No cuts to ongoing and base savings rates.
Westpac eSaverOld rateNew rateDifference
Intro rate (5 months)

1.05%

1.00%

-0.05%

Ongoing rate

0.05%

0.05%

No change

Westpac LifeOld rateNew rateDifference
Max rate (if conditions met)

1.05%

1.00%

-0.05%

Base rate

0.40%

0.40%

No change

Conditions for max ongoing rate: Balance needs to be higher every mth.

Analysis from RateCity shows almost 30 banks have cut at least one savings account rate this month, despite no move to the cash rate since March.

Seventy-seven (77) per cent of all savings accounts on the RateCity.com.au database have maximum rates under 1 per cent.

RateCity research director, Sally Tindall, said today’s changes from Westpac served as a good reminder for savers check their rate.

“Banks have been chipping away at savings rates since the emergency cash rate cut in March, on the back of sharper home loan rates and a drop in demand for deposits,” she said.

“While the ultra-low savings environment is likely to remain for the foreseeable future, savers shouldn’t just accept a rate below 1 per cent.

“There is competition in the savings market if you know where to look, with a handful of banks still offering ongoing rates of up to 1.85 per cent,” she said.

CONDITIONAL SAVINGS ACCOUNTS

Big four banks:

BankProductBase rate Max rateConditions
CBAGoal Saver

0.10%

0.50%

Deposit $200+/mth, no withdrawals
WestpacLife

0.40%

1.00%

Balance needs to be higher every mth
NABReward Saver

0.05%

1.00%

1+ deposit and no withdrawals per mth
ANZProgress Saver

0.01%

0.85%

Deposit $10+/mth, no withdrawals

Note: based on a balance of less than $50K. CBA has higher rates for higher balances.

Market leaders:

BankMax rateBase rateConditions for max rate
Bank of Queensland

1.85%

0.20%

Deposit $1k+ and 5+ purchases / mth on linked account
Up

1.85%

0.10%

Make 5+ purchases /mth via linked account
86 400

1.85%

0.25%

Deposit $1k+ per month

Note: the savings accounts with the highest ongoing rates on RateCity.com.au

STANDARD SAVINGS ACCOUNTS

Big four banks:

BankProductIntro rate Ongoing rateIntro term
CBANetBank Saver

1.05%

0.05%

5 mths
WestpaceSaver

1.00%

0.05%

5 mths
NABiSaver

1.05%

0.05%

4 mths
ANZOnline Saver

0.80%

0.05%

3 mths

Market leaders:

BankAccountIntro rateIntro termOngoing Rate
Macquarie BankSavings Account2.26%4 months1.35%
RabobankHigh Interest Savings2.25%4 months0.80%
AMP BankSaver Account2.20%6 months1.05%

Note: the highest introductory rate savings accounts on RateCity.com.au.

Disclaimer

This article is over two years old, last updated on June 26, 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.

Compare savings accounts

Maximum rate condition

3.55%

intro 4 months then 2.85%

2.85%

Not applicable

  • Promoted
  • Intro offer rate
  • App banking
  • Online banking
  • Linked account required

3.65%

intro 3 months then 1.40%

1.40%

Not applicable

ANZ Banking Group Limited
Online Saver
  • Intro offer rate
  • App banking
  • Online banking
  • Linked account required

5.00%

intro 5 months then 1.45%*

1.10%

*Available for new accounts opened online by ne...

Westpac Banking Corporation Ltd
eSaver
  • Bonus interest with conditions
  • Intro offer rate
  • App banking
  • Online banking

5.00%*

1.85%

*Ensure your account balance is higher at the e...

Westpac Banking Corporation Ltd
Life
  • Bonus interest with conditions
  • App banking
  • Online banking
  • Linked account required

Product database updated 25 Jan, 2025

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

Promoted savings accounts

ING

Savings Accelerator (Kick Starter offer)

Real Time Rating™

  • Intro offer rate
  • App banking
  • Online banking
  • Linked account required

Maximum rate p.a.

3.55%

intro 4 months then 2.85%

Base rate p.a.

2.85%

ANZ Banking Group Limited

Online Saver

Real Time Rating™

  • Intro offer rate
  • App banking
  • Online banking
  • Linked account required

Maximum rate p.a.

3.65%

intro 3 months then 1.40%

Base rate p.a.

1.40%

Westpac Banking Corporation Ltd

eSaver

Real Time Rating™

  • Bonus interest with conditions
  • Intro offer rate
  • App banking
  • Online banking

Maximum rate p.a.

5.00%

intro 5 months then 1.45%*

Base rate p.a.

1.10%

Westpac Banking Corporation Ltd

Life

Real Time Rating™

  • Bonus interest with conditions
  • App banking
  • Online banking
  • Linked account required

Maximum rate p.a.

5.00%*

Base rate p.a.

1.85%

product data updated on

Product data updated on 25 Jan 2025