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Final major bank reveals savings rate reductions

The Commonwealth Bank of Australia has cut savings rates by up to 25 basis points for its savings accounts, becoming the final big four bank to announce its changes.

CBA is the final big four bank to cut its savings rates in light of the RBA cash rate cuts in July, following on from similar announcements from Westpac, ANZ and NAB.

CBA’s Netbank saver customers will see a 15 basis point rate change – with the introductory rate dropping to 2.05 per cent (down from 2.20 per cent) for the first five months, after which the rate will reduce to 0.15 per cent (down from 0.3 per cent).

Meanwhile, some customers with Goalsaver accounts will receive the full 25 basis point reduction.

The full rate reduction will apply to those with balances of under $50,000 in their Goalsaver account (with a new maximum rate of 1.15 per cent), while those with between $250,000-$999,000 will have a new max rate of 1.85 per cent.

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The maximum rates will only apply when they deposit more than $200 a month and make no withdrawals, otherwise they will see a base rate of interest of 0.01 per cent.

Goalsaver customers with between $50,000 and $249,000 will see a reduction of 20 basis points, with their max rates falling from 1.70 per cent to 1.50 per cent.

How CBA stacks up against the other big banks

With a maximum rate of 1.15 per cent for savers with balances under $50,000, CBA has the lowest conditional savings rate of all big four banks.

The maximum rate for a Westpac Life account is 2.1 per cent, whereas the maximum for an ANZ Progress Saver account is 1.95 per cent, and the NAB Reward Saver account provides a maximum of 1.86 per cent.

In terms of introductory rates, CBA’s maximum rate of 2.05 per cent (for the first five months) is third highest of the major banks, ahead of ANZ’s online saver account, which offers a 1.95 per cent introductory rate for three months.

The Westpac eSaver provides a rate of 2.16 per cent for five months, while NAB’s iSaver sits at 2.11 per cent for the first four months.

[Related: Major bank reduces savings rates]

Final major bank reveals savings rate reductions
Commonwealth Bank of Australia
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