RaboDirect, Virgin & Bankmecu slash savings rates

22/12/2011

While most lenders moved their standard variable rates down in line with the cash rate moves of the past two months a number of deposit-takers took a bit extra off their rates. The Reserve Bank of Australia cut the cash rate by 25 basis points in November and by another 25 points earlier this month.

In response, RaboDirect, previously a pace-setter in the deposit market, took 86 basis points off its Savings Account rate, down from 6.26 per cent at the beginning of November to the current rate of 5.4 per cent. Bankmecu has cut the rate on its Incentive Saver Account by 75 basis points over the past two months - down 25 basis points in November and down a further 50 basis points on December 9.

SGE Credit Union cut the rate on its Bonus Saver Account by 75 basis points over two months, according to data sourced from Infochoice.

Virgin Money cut its Virgin Saver introductory rate by 39 basis points in November and by 27 points on December 12 - a total of 66 basis points. Virgin's four-month introductory rate of 5.85 per cent is one of the best rates currently on offer. However, Virgin made a deeper cut to its base rate - down 70 basis points to 4.65 per cent.

Source: Banking Day