Latest news with #RewardSavers
Perth Now
3 days ago
- Business
- Perth Now
Sting in the tail of RBA's latest rate cut
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. NewsWire Credit: NCA 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. NewsWire / Nicholas Eagar Credit: NewsWire 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.
Yahoo
20-06-2025
- Business
- Yahoo
Big four bank announces fresh blow to savers
NAB has become the latest bank to move on interest rates, cutting the rate of one of its more popular savings accounts. NAB has announced its Reward Savers account has fallen by 0.05 per cent for a new maximum rate of 4.35 per cent, in the second cut in less than a month. It follows a 25 basis points rate reduction on May 23 in line with the Reserve Bank of Australia's official interest rate reductions. Account holders with NAB's Reward Savers will now get a 30 basis point reduction on their money held in the account. Canstar data insights director Sally Tindall described it as a small blow for savers who are already watching their returns slip away. 'It shows that banks don't need a cash rate change to move the goalposts for customers. It's a small move but a disappointing one nevertheless,' she said. According to Canstar, NAB is not the only bank moving on rates, with Australians now having just six banks offering at least one ongoing savings rate above 5 per cent including some young adult accounts and excluding those for children. '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,' Ms Tindall said. While each of the savings accounts comes with terms and conditions, including deposits and transactions, BOQ Future Super, BCU Bank Boss, P & N Bank Savvy Savers, MOVE Bank Growth Saver and ING Savings Maximiser all still offer rates above 5 per cent. Westpac Life Spend and Save also offers younger Aussies a 5 per cent savings rate, but comes with the major caveat of being for those aged 18 to 29. Ms Tindall warned if the Reserve Bank cuts the cash rate again in July, which the bond market says has an 83 per cent chance of happening, the days of a 5 per cent savings rate could be behind us. 'If the RBA wields its knife again in July or August, savings rates starting with a 5 won't last beyond winter,' she said. '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.'
Perth Now
20-06-2025
- Business
- Perth Now
Big four bank announces fresh blow to savers
NAB has become the latest bank to move on interest rates, cutting the rate of one of its more popular savings accounts. NAB has announced its Reward Savers account has fallen by 0.05 per cent for a new maximum rate of 4.35 per cent, in the second cut in less than a month. It follows a 25 basis points rate reduction on May 23 in line with the Reserve Bank of Australia's official interest rate reductions. Canstar called it a 'small blow' for savers. NewsWire / Nicholas Eagar. Credit: NewsWire Account holders with NAB's Reward Savers will now get a 30 basis point reduction on their money held in the account. Canstar data insights director Sally Tindall described it as a small blow for savers who are already watching their returns slip away. 'It shows that banks don't need a cash rate change to move the goalposts for customers. It's a small move but a disappointing one nevertheless,' she said. According to Canstar, NAB is not the only bank moving on rates, with Australians now having just six banks offering at least one ongoing savings rate above 5 per cent including some young adult accounts and excluding those for children. '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,' Ms Tindall said. While each of the savings accounts comes with terms and conditions, including deposits and transactions, BOQ Future Super, BCU Bank Boss, P & N Bank Savvy Savers, MOVE Bank Growth Saver and ING Savings Maximiser all still offer rates above 5 per cent. Westpac Life Spend and Save also offers younger Aussies a 5 per cent savings rate, but comes with the major caveat of being for those aged 18 to 29. NAB announces a small cut to popular savings account. NewsWire / Gaye Gerard Credit: News Corp Australia Ms Tindall warned if the Reserve Bank cuts the cash rate again in July, which the bond market says has an 83 per cent chance of happening, the days of a 5 per cent savings rate could be behind us. 'If the RBA wields its knife again in July or August, savings rates starting with a 5 won't last beyond winter,' she said. '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.'
