More savings account rate cuts from big four

MEDIA RELEASE 25 October 2019

  • NAB and Westpac announce new rate cuts for savers
  • ANZ Notice TD 7m 1.6% special offer is top big 4 term deposit rate
  • Savers need to switch from the big four to significantly beat inflation

NAB and Westpac have today announced new cuts to savings rates.

Savers now need to move their money out of a big four bank to find an ongoing maximum rate significantly above inflation.

The highest ongoing savings rate offered by a big four bank is now Westpac’s Life account with a rate of 1.65 per cent pa. The current rate of inflation is 1.60 per cent.

NAB cuts iSaver rate

NAB is slicing its iSaver maximum bonus introductory rate from 1.86 per cent pa to 1.70 per cent pa.

Westpac cuts business and community account rates

Westpac has cut rates on its Community Solutions Cash Reserve account by up to 0.20 per cent pa to a total maximum rate of 0.55 per cent pa.

This account is used by many sporting clubs, associations and community groups.

Westpac’s Business One accounts are market leaders in the business banking market. Westpac has trimmed rates on its Business One Flexi account by up to 0.09% pa. The new top rate offered by Westpac’s key business bank account for balances under $250,000 is 0.01 per cent pa, down from 0.10 per cent pa.

The ANZ Business Online Saver is paying 0.15 per cent. CBA’s Business Online Saver and NAB’s Business Cash Maximiser are both paying 0.10 per cent pa on balances over $10,000.

Westpac has also trimmed the Business Cash Reserve account rate by 0.05 per cent pa to 0.10 per cent pa for balances over $10,000.

“Savers need to be actively managing their accounts to ensure they are beating inflation,” said Vadim Taube, CEO of leading Australian financial comparison site InfoChoice.com.au.

“That means being prepared to move their cash to another institution if they want the best rates on offer at any one time.”

“Right now, the top rate from a big bank TD is ANZ’s special offer of 1.6 per cent on 7 month terms.”

“There are now no options from the big four banks for savers who want a rate significantly above the current CPI of 1.6 per cent.”

“Savers who don’t want their money to lose value need to compare their rate with savings rates from outside the big four banks,” said Mr Taube.

“For example, ME’s Online Savings Account is paying 2.20 per cent if you have a linked ME transaction and use it four times per month.

“So savers can get a reasonable rate above inflation by looking around and comparing.”

“The online and neo banks make applying for a savings account easy and quick so it’s not hard to find a better savings rate.”

Go straight to the latest rates information from individual banks and other institutions here.

For more information on Savings account rates, data and commentary, please contact:

Jason Bryce, Media Manager on 0428 777 727 jason.bryce@infochoice.com.au

For more comments, please contact: Vadim Taube, Chief Executive on 0403 580 794

Keep up to date with the latest RBA rates outlook at InfoChoice.

* InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.

Comparison rate is based on a secured loan of $150,000 over the term of 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan

InfoChoice is a leading Australian comparison website for retail banking and personal finance products. We’ve been helping Aussies find great offers on credit cards, home loans, savings accounts, term deposits, personal loans and car loans for over 25 years. Our mission is to help consumers make an informed purchasing by bringing together the most comprehensive list of financial products on the market today.

At InfoChoice, we strive to be:

•           Comprehensive. We compare more than 3500 individual products from 145 providers within Australia to offer you the best value.

•           Informative. We know how important it is for you to crunch the numbers before buying. Our calculators help you understand the cost of different products over the long term and show you the potential savings.


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