CBA Have Already Cut Savings Rate

CBA, Australia’s largest bank has reduced interest rates on its savings accounts by up to 0.25%. It is the last of the four big banks to cut savings rates following the cash rate cut of RBA.

For the CBA NetBank saver account, the new intro rate which covers the first 5 months is 2.05% from the old intro rate of 2.20% which cut the rate to 0.15%, and the rest will have an ongoing rate of 0.15%

The four big bank savings accounts which include CBA, ANZ, NAB, and Westpac have all reduced their base interest rates on their savings accounts as stated below.

*CBA NetBank Saver has a base rate of 0.15% and a max rate of 2.05% with an introductory term of 5 months.

*ANZ Online Saver has a base rate of 0.15% and a max rate of 1.95% with an introductory term of 3 months.

*NAB iSaver has a base rate of 0.11% and a max rate of 2.11% with an introductory term of 4 months.

*Westpac eSaver has a base rate of 0.15% and a max rate of 2.16% with an introductory term of 5 months.

Interest rates on savings accounts, term deposits, and home loans are all lowering their cost since the RBA (Reserve Bank of Australia) lowered their cash rate last June and most recently this month. Cash rate cuts aim to serve as a move for the rest in the financial industry to start adjusting their interest rates as well.

Now that all of the four major banks have now cut their savings rates, will the cutting of the base rates expected to drop again in the coming months? And will they lower their base rates more and go down to zero or even negative base rates?

Author: Shane