The Commonwealth Bank has announced another interest cut in savings accounts, which are set to impact young people saving for their first home.
The Announcement:
Australia’s biggest bank, CBA, has today cut its savings rates by up to 0.07 per cent.
The RBA has not moved the cash rate since 3 November 2020, however the bank has made up to six cuts on some of its savings rates in this time.
RateCity.com.au research director, Sally Tindall, said: “Over the last 10 months, CBA has been quietly chipping away at its savings rates. While the cuts have all been relatively small, they’re starting to add up.”
“If you have money in the bank, make sure it is working as hard as it possibly can,” she said.
“Australia’s largest bank might be paying peanuts to its savings customers, but other banks are still offering rates four times higher if you shop around.”
Today’s cuts
| Savings account | Old max rate | New max rate | Change |
| GoalSaver | 0.35% | 0.30% | -0.05% |
| Youthsaver (under 18yrs) | 0.60% | 0.55% | -0.05% |
| NetBank Saver | 0.40% for 5 mths then 0.05% | 0.33% for 5 mths then 0.05% | -0.07% to intro rate |
Cuts since 1 November 2020, CBA vs cash rate
| Max rate 1 Nov 2020 | Max rate today | Change | |
| CBA GoalSaver | 0.75% | 0.30% | -0.45% |
| CBA Youthsaver (under 18 yrs) | 1.00% | 0.55% | -0.45% |
| CBA NetBank Saver | 0.75% (5 mths) | 0.33% (5 mths) | -0.42% (intro rate only) |
| Cash rate | 0.25% | 0.10% | -0.15% |
RateCity.com.au database shows there are nine banks offering ongoing savings rates over 1 per cent.
“Young savers can get access to even higher rates if they know where to look. Westpac is handing out up to 3 per cent to Australians aged 18 to 29. That’s staggering considering CBA’s offering the same cohort a maximum ongoing rate of just 0.3 per cent.
“Just beware, most savings accounts come with fiddly terms and conditions to get the maximum rate, so make sure you qualify,” she said.
Big four bank: conditional savings rates
| Bank | Account | Max rate |
| CBA | GoalSaver | 0.30% |
| Westpac | Life | 0.40% |
| NAB | Reward Saver | 0.30% |
| ANZ | Progress Saver | 0.35% |
Big four banks standard savers
| Bank | Product | Intro rate (3-5 mths) | Ongoing rate |
| CBA | NetBank Saver | 0.33% | 0.05% |
| Westpac | eSaver | 0.40% | 0.05% |
| NAB | iSaver | 0.35% | 0.05% |
| ANZ | Online Saver | 0.30% | 0.05% |
Highest ongoing savings accounts (no age restrictions)
| Bank | Max rate |
| ING | 1.35% |
| AMP Bank | 1.25% |
| MyState Bank, Virgin Money, 86 400 | 1.20% |
Young Adults: highest ongoing savings rates
| Bank | Account | Max rate |
| Westpac Life | Ages 18 to 29 (up to $30K) | 3.00% |
| BOQ Fast Track Starter | Ages 14 to 24 (up to $10K) | 2.50% |
Source: Rate City
