Good news as savers saved from full rate cuts

Which banks are cutting savings rates?

Savers are often forgotten in conversations about rate cuts. Borrowers love lower interest rates but the other side of the equation – people who rely on interest from savings – are left to deal with lower returns without much apparent attention from policy makers or banks.

Only 37.1 per cent of Australian households are paying off a home loan according to the Australian Bureau of Statistics.* Many more Australians have a savings account or term deposits and want to see their savings grow.

So it is no surprise that almost half of respondents to an InfoChoice survey this week said NO to the question: “Does Australia need an interest rate cut?”

“Savings rates in Australia are low already and any further reduction in rates of returns for savers hits retirees, young people trying to build a home deposit and anyone saving for big purchases,” said Vadim Taube, chief executive of financial comparison website InfoChoice.com.au.

“The good news is that banks seem to be largely sparing savers from the full impact of the RBA’s 0.25 percentage point rate cut.

“That good news is tempered by the cold hard fact that savings rates are already extremely low and unlikely to improve substantially in the short term,” said Mr Taube.

“That means that savers need to compare the rate they are getting now with the best in the market, just to stay ahead of inflation, which is now 1.3 per cent per annum.”

Which banks are NOT cutting savings account interest rates?

Commonwealth Bank have not made any changes to their savings accounts rates following the RBA rate cut, a CBA spokesperson told Infochoice.com.au today.

Westpac have their savings accounts rates “under review” according to a spokesperson but have not yet passed on any rate cuts to savers.

A NAB spokesperson told InfoChoice.com.au that savings account rates are reviewed on a day to day basis but have not been adjusted following the RBA June rate cut.

ANZ Bank has not confirmed any rate cuts for at-call savings accounts but has sliced all term deposit rates this week. ANZ’s Progress Saver account is currently offering a maximum bonus rate of 2.40 per cent p.a.

Suncorp Bank’s David Carter said his bank recognised that falling rates are great for borrowers but not so great for savers.

“There are just as many, if not more, Australians who rely on the income of their savings to support their living expenses,” said Mr Carter.

David Carter said Suncorp took this into consideration in making their rate decisions in June and said Suncorp will “continue to provide competitive rates for our deposit customers.” 

Compare savings accounts from Australia’s major banks, credit unions and building societies here.

Which banks are cutting savings account interest rates?

Bank Australia and BankVic are among the few institutions to have confirmed savings account rate cuts.

Bank Australia has sliced 0.20 percentage points from its mySaver bonus rate and 0.30 percentage points from the maximum rate on offer from its’ Bonus Saver account. The maximum rate now offered by these products is 2.40 per cent per annum.

BankVic has trimmed 0.15 percentage points from its S8 Bonus Saver account. This account now offers a maximum bonus rate of 2.25 per cent.

Compare savings accounts from Australia’s major banks, credit unions and building societies here.

Which banks are cutting term deposit rates?

Over recent weeks, term deposit rates have be