Three major banks deal interest rate blow for Aussies ahead of RBA call
Three of the Big Four banks have cut interest rates for savings customers ahead of the Reserve Bank of Australia's (RBA) meeting next week. Commonwealth Bank (CBA) and Westpac have slashed term deposit rates, while NAB and subsidiary ubank have taken a knife to savings account rates.
CBA has cut several of its term deposit specials, with its 6-month, 10-month and 12-month specials cut by 0.10 per cent. The major bank's highest available rate is now its 10-month at 4.50 per cent.
Westpac and its brands St.George, BankSA and Bank of Melbourne have made a similar move, reducing the rate on their 11-month term deposit special by 0.10 per cent. The new rate is now 4.50 per cent for in-branch customers, or 4.60 per cent for those who apply online.
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NAB has cut its Rewards Saver bonus rate by another 0.10 per cent, bringing the total interest rate down to 4.65 per cent for customers who make at least one deposit and no withdrawals during the month.
Subsidiary ubank, who previously offered one of the better bonus interest savings rates on the market, has also cut its popular Save rate by 0.15 per cent to 5.10 per cent for balances up to $100,000, and 0.10 per cent to 4.65 per cent for balances over $100,000.
This is the second time the banks have cut their savings rates in the last few weeks, with NAB and ubank passing on the 0.25 per cent rate cut shortly after the RBA's announcement.
ANZ also axed the 2.25 per cent introductory bonus on its Online Saver account earlier this month, along with cutting its Progress Saver interest rate by 0.10 per cent.
The interest rate cuts come as banks shuffle their fixed home loan interest rates, with ANZ and Macquarie recently cutting rates by up to 0.25 per cent.
Mozo's database found the Big Four were not offering the best returns for savers.
ING Savings Maximise currently has the best bonus rate at 5.40 per cent for balances up to $100,000.
Rabobank has the best introductory rate at 5.45 per cent for four months, before reverting to 4 per cent for balances up to $250,000.
Australian Unity has a 4.85 per cent has the top unconditional rate for balances up to $250,000.
Mozo money expert Rachel Wastell said interest rates varied "dramatically" between banks, so it was "more important than ever for savers to shop around".
'For savers still with the Big Four, now is the time to compare," she said.
"Challenger banks, specialist banks and smaller regional lenders are leading the charge when it comes to deposit rates, and if you want to make the most of your hard-earned money, you shouldn't be settling for less.'
The RBA will meet next week to set the cash rate.
The central bank is expected to leave the cash rate on hold at 4.1 per cent, after cutting rates in February.
CBA, NAB and Westpac's economic teams expect the central bank will cut rates again in May, while ANZ thinks there will only be one more cut in August.Sign in to access your portfolio
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