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The Australian
a day ago
- Business
- The Australian
Major banks cut savings rates before mortgage relief takes effect
Australia's major banks and financial institutions have cut saving rates in the days following the Reserve Bank moving on interest rates. In unwelcome news for savers, seven financial institutions have this week announced they are reducing savings rates. NAB has moved on two of its savings accounts, reducing the rates on its Reward Saver and iSaver products. Reward Savers will get a new maximum rate of 4.10 per cent, while iSavers will get up to 4.40 per cent for the first four months before the account reverts back to 1.25 per cent. NAB has moved on its savings accounts 10 days ahead of variable mortgage rates. The big banks have started to move on savings rates. Picture: NewsWire BOQ's Future Saver account, which is available to young adults aged 14-35, has dropped from 5.00 to 4.85 per cent. Macquarie Bank has cut both savings and mortgage rates. Macquarie savers will now get a maximum 4.25 per cent, while those on a transaction account will get 2 per cent going forward. Other banks that have already cut savings rates this week include AMP, Great Southern Bank, ME Bank and Hume Bank. The move on savings accounts follows the Reserve Bank of Australia on Tuesday announcing it had lowered the official cash rate by 25 basis points to 3.60 per cent. Canstar data insights director Sally Tindall says the third RBA rate cut of the year is already hitting savers in the hip pocket. 'We expect more savings rates will fall victim to this latest RBA cut in the weeks ahead; however, banks aren't likely to make a song and dance about them,' she said. Savers will get slugged before mortgage holders get any rate relief. Picture: NewsWire / Nicholas Eagar Following the RBA's announcement, Commonwealth Bank was the first of the major banks to tell customers it would pass on the rate cut in full to variable rate home loan customers, effective from August 22. Shortly after, Westpac said it was passing on the cut in full to their variable rate customers and savers alike. Westpac savers' interest rates will drop from August 22, reducing the amount they are making off their money, but mortgage holders will have to wait a further four days to get any interest-rate relief. ANZ announced similar terms for borrowers, also decreasing variable rates by 25 basis points effective August 22. CBA and ANZ savings rates are still under review, but Canstar says if history is anything to go by, the banks will cut select savings rates next Friday. NAB will reduce its standard variable home loan rates by 0.25 per cent starting from Monday, August 25.
News.com.au
2 days ago
- Business
- News.com.au
‘Disappointing for customers': Banks announce savings rate cuts
Australia's major banks and financial institutions have cut saving rates in the days following the Reserve Bank moving on interest rates. In unwelcome news for savers, seven financial institutions have this week announced they are reducing savings rates. NAB has moved on two of its savings accounts, reducing the rates on its Reward Saver and iSaver products. Reward Savers will get a new maximum rate of 4.10 per cent, while iSavers will get up to 4.40 per cent for the first four months before the account reverts back to 1.25 per cent. NAB has moved on its savings accounts 10 days ahead of variable mortgage rates. BOQ's Future Saver account, which is available to young adults aged 14-35, has dropped from 5.00 to 4.85 per cent. Macquarie Bank has cut both savings and mortgage rates. Macquarie savers will now get a maximum 4.25 per cent, while those on a transaction account will get 2 per cent going forward. Other banks that have already cut savings rates this week include AMP, Great Southern Bank, ME Bank and Hume Bank. The move on savings accounts follows the Reserve Bank of Australia on Tuesday announcing it had lowered the official cash rate by 25 basis points to 3.60 per cent. Canstar data insights director Sally Tindall says the third RBA rate cut of the year is already hitting savers in the hip pocket. 'We expect more savings rates will fall victim to this latest RBA cut in the weeks ahead; however, banks aren't likely to make a song and dance about them,' she said. Following the RBA's announcement, Commonwealth Bank was the first of the major banks to tell customers it would pass on the rate cut in full to variable rate home loan customers, effective from August 22. Shortly after, Westpac said it was passing on the cut in full to their variable rate customers and savers alike. Westpac savers' interest rates will drop from August 22, reducing the amount they are making off their money, but mortgage holders will have to wait a further four days to get any interest-rate relief. ANZ announced similar terms for borrowers, also decreasing variable rates by 25 basis points effective August 22. CBA and ANZ savings rates are still under review, but Canstar says if history is anything to go by, the banks will cut select savings rates next Friday. NAB will reduce its standard variable home loan rates by 0.25 per cent starting from Monday, August 25.
News.com.au
6 days ago
- Business
- News.com.au
Named: Every bank that's slashed rates to under 5pc
Eighteen Australian lenders have slashed interest rates below 5 per cent ahead of the Reserve Bank's expected big move on Tuesday. Comparison firm Canstar's database to August 8 showed 18 lenders had at least one fixed rate sitting under 5 per cent now, and one also had a variable rate at that level - Police Credit Union. The list below is based on personal home loans for any loan amount, any LVR, and both principal & interest and interest only payments, and excludes introductory, green only and first home buyer only home loans. Lenders with lowest fixed rates under 5 per cent: Rank Lender Lowest advertised rate Term 1 BOQ 4.89% 2 years 2 Greater Bank 4.94% 3 years 3 The Mutual Bank 4.94% 3 years 4 Easy Street Fin Services 4.95% 2 years 5 Regional Australia Bank 4.98% 2 years 6 BankVic 4.98% 3 years 7 Pacific Mortgage Group 4.99% 2 years 8 Hume Group 4.99% 3 years 9 Macquarie Group 4.99% 2 years 10 Police Bank 4.99% 3 years SOURCE: Canstar data insights director Sally Tindall said Bank Australia is currently offering a lowest fixed rate of 4.59 per cent for 3 years, but it was strictly for new builds with a NatHERS 7.5 star rating or higher​, all electric and rooftop solar, and the home must have been built within the last 18 months. 'The question is, which bank will be next to trump them, in a bidding war that's slowly but surely pushing fixed rates south,' Mr Tindall said. 'Fixed rates starting with a '4' are now a firm fixture in the lowest rate tables with 18 lenders now in the under 5 per cent club.' She said if the Reserve Bank puts in a 0.25pp cut Tuesday, 'owner-occupiers paying down their debt should not be on a rate that's over 5.50 per cent'. 'In fact, if the majority of banks pass the cut on in full, which they should absolutely do, then there should be over 30 lenders offering at least one variable rate under 5.25 per cent, while CBA and Westpac's lowest rates could hit 5.34 per cent.' If the RBA cuts the cash rate to 3.60 per cent on Tuesday, an owner-occupier with a $600,000 debt today, and 25 years remaining on their loan, could see their monthly repayments drop by $90, assuming the banks pass it on in full to existing variable rate borrowers, Ms Tindall said.
Daily Telegraph
02-07-2025
- Business
- Daily Telegraph
Experts warn: Buyers about to strike as Reserve Bank cut looms
Household savings have hit a record high, but a looming cash rate cut could wipe out the last of the 5 per cent savings deals. Fresh APRA data shows Australians added another $6.3bn to their bank balances in May, pushing total household deposits to $1.62 trillion. The figures come as buyers return to the housing market, encouraged by growing expectations of a July Reserve Bank rate cut and more favourable borrowing conditions. RELATED: Revealed: Bodybuilder's secret $7m+ Melb hide-out Five buyers fought over this Glen Iris gem Inside Wyndham's most wanted family home But high-interest savings accounts are disappearing fast. Just four banks are still offering ongoing rates of 5 per cent or more, according to Canstar. Two providers, BCU and P & N Bank, cut their highest rates from 5.00 to 4.90 per cent last week, reducing the number of 5 per cent products on the market. BOQ's Future Saver account has the highest ongoing rate at 5.10 per cent, but only for customers aged 14 to 35 who meet monthly deposit and spending conditions. Other top accounts with 5.00 per cent offers include ING, Westpac and MOVE Bank. Canstar insights director Sally Tindall said further rate cuts would likely bring the curtain down on high-yield savings options. 'Rates starting with a '5' are fast becoming an endangered species,' Ms Tindall said. 'If the RBA cuts next week, they could be extinct within days.' At the same time, banks are growing their mortgage books. CBA added almost $3bn in residential loans in May, the largest monthly increase among the major lenders. Over the past year, the bank's mortgage portfolio has grown by $34bn. NAB and ANZ also recorded solid growth in the month, up 0.5 and 0.6 per cent respectively. M R Advocacy director and co-founder of Scale Lending Mortgage brokers Madeleine Roberts said more clients were re-entering the market, often with full deposits. 'A lot of our buyers are coming to us with 20 per cent deposits,' Ms Roberts said. 'That shows real discipline, especially considering how expensive life is right now.' Ms Roberts said falling savings rates and the threat of rising prices had pushed many buyers to act. 'There's a real sense of urgency,' she said. 'Some buyers are desperate to get in before rates fall further. 'That's leading to more competition — and in some cases, overpaying.' She said younger buyers in particular were more willing to look at long-term strategies, but warned that rapid purchases could limit future capital growth. 'If you're buying at auction and paying top dollar, you need to think about a 10-year plan,' Ms Roberts said. 'Otherwise, it could take years to make that money back.' Buxton ACOM's Peter Serafino said enquiry levels at open homes had picked up since May. 'We're seeing more buyers and more interest, but not all of it is converting just yet,' Mr Serafino said. 'People who have been saving steadily are starting to feel like it's time to move.' Mr Serafino said move-in ready homes priced between $1m and $2m were performing strongest. 'Anything turnkey under $2m is still seeing solid competition,' he said. Mr Serafino added that falling rates would give many buyers more financial firepower. 'As borrowing power increases, so will prices, particularly if stock levels remain tight,' he said. The Buxton ACOM agent said. sellers, meanwhile, were becoming more realistic. 'A lot of our sellers have already bought, so they're more motivated and open to negotiation,' Mr Serafino said. 'Last year was more about investors cashing out. This year feels different.' With the Reserve Bank meeting due next Tuesday, analysts say the July decision could shape buyer sentiment into spring. Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. MORE: James Packer's new deal at Melbourne supermarket site Inside 'Hospitality Yoda's luxe Melb home Tragic side of Aus housing crisis exposed
Daily Mail
23-06-2025
- Business
- Daily Mail
NAB issue major blow for millions of Aussies with cash in a bank account
Aussie savers are seeing lower returns after the Reserve Bank of Australia cut interest rates in May. Major banks, including NAB and BOQ have responded by further reducing savings rates. While lower rates benefit borrowers, they're a blow to savers - particularly those building a home mortgage deposit or relying on interest payments for retirement. NAB reduced its Reward Saver rate by 0.05 percentage points, bringing it down to 4.35 per cent. Meanwhile BOQ cut the maximum rate on its account for young adults from 5.25 per cent to 5.10 per cent. Some banks have gone even further than the RBA's 25 basis point rate cut. ING slashed its Savings Maximiser rate from 5.40 per cent to 5.00 per cent on 2 June, a 40 basis point drop. Across the February and May RBA cuts, ING has reduced its rate by a half a percentage point or 50 basis points. research shows the average ongoing savings rate today is 3.07 per cent , while at the start of the year the average rate was 3.40 per cent - a drop of just 0.33 percentage points. Rabobank also made significant reductions, though specific figures were not disclosed. Term deposit rates are falling even faster. The average one-year term deposit rate has dropped from 4.14 per cent on 1 January to 3.52 per cent - a 0.62 percentage point fall in just six months. Sally Tindall, Canstar's data insights director, warned that savers should brace for more reductions: 'While the average savings rate on our database is an uninspiring 3.07 per cent, there are six banks still offering an ongoing savings rate of 5 per cent or more. That said, if the RBA wields its knife again in July or August, savings rates starting with a 5 won't last beyond winter. 'Term deposit rates are, unsurprisingly, falling faster than at-call savings rates, as banks continue to bake in further cash rate cuts into the fixed rate term. 'If you're someone who likes the certainty and security a term deposit can bring, time is of the essence as these rates are likely to keep on falling in the weeks ahead.' Her comments follow an updated forecast from Luci Ellis, Westpac's chief economist and former Reserve Bank official, who has now included two additional interest rate cuts in her 2026 outlook. On top of two 25 basis point cuts to the key lending rate in August and July in 2025, Ms Ellis predicts additional reductions by the central bank in February and May. That would leave the cash rate at a terminal figure of 2.85 per cent, from the current rate of 3.85 per cent, meaning mortgage holders would save $350 a month. The additional cuts could come even earlier, potentially in December and February, if inflation and the labour market unfold even weaker than expected in late 2025, Ms Ellis said earlier this month. Changes to the inflation outlook mean arguments in favour of more cuts in 2026 are building. A faster-than-anticipated fall in immigration will ease rental costs, dragging down inflation, which Westpac now believes will drop below the midpoint of the RBA's 2-3 per cent target by the end of the year. 'We believe that would tip the RBA in favour of cutting the cash rate further,' Ms Ellis said. 'Indeed, if we are right, the RBA might be in for a bit of an 'oh crikey!' moment late this year.' Australia's economy is at risk of a slower-than-expected recovery, as disappointing GDP growth figures in last week's national accounts revealed, amid a 'shaky handover' from public to private spending. 'Consumer spending is tracking weakly, as we expected. We are now starting to see this weigh on business activity. The result is likely to be soggy growth and surprisingly weak wages growth despite apparently low unemployment,' Ms Ellis said. CBA and ANZ predict just two more rate cuts, beginning in August, while NAB is the only big four bank betting on the RBA to cut rates at its next meeting in July. All up, NAB expects three more cuts to the cash rate that would see it fall to 3.1 per cent, down from 3.85 per cent now.
