Westpac cuts savings rates

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.

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:

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

Market leaders:

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

STANDARD SAVINGS ACCOUNTS

Big four banks:

Market leaders:

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

Compare savings accounts