Banks decreasing savings account rates ahead of RBA decision
Term deposits and high-interest savings accounts are seeing cuts.
A slew of Australian banks have reduced interest rates for savings accounts and term deposits ahead of this week's cash rate decision.
The Reserve Bank of Australia (RBA) will likely leave rates unchanged on Melbourne Cup day, following a firm increase in headline inflation during the third quarter of 2016. However, that hasn't stopped some banks adjusting their rates downwards ahead of the Tuesday announcement.
Bankwest has reduced special introductory base rates on TeleNet Saver accounts, down 0.25% to 2.25%. While introductory margins haven't changed, the 4-month introductory rate slips from 3.00% to 2.75%.
Interest rates fell slightly (-0.10%) for Smart eSaver accounts with balances under $500,000 and more (-0.25%) for those holding between $500,000 and $5,000,000.
Rates were also reduced (-0.25%) on Solid Gold Saver accounts with balances exceeding $10,000.
Bankwest's standard rate remains unchanged at 1.50%.
| Bankwest | Current | New |
|---|---|---|
| Standard rate | 1.50% | 1.50% |
| TeleNet Saver | ||
| 4-month introductory rate | 3.00% | 2.75% |
| Special introductory base rate | 2.50% | 2.25% |
| Special introductory margin (for accounts opened from 9 August 2016) | 0.50% | 0.50% |
| Smart eSaver | ||
| Variable smart rate - $0 - $500,000 | 2.20% | 2.10% |
| Variable smart rate - $500,000 - $5,000,000 | 2.00% | 1.75% |
| Variable standard rate | 0.01% | 0.01% |
| Solid Gold Saver | ||
| $0 up to $10,000 | 0.00% | 0.00% |
| $10,000+ | 1.50% | 1.25% |
ANZ has mildly altered rates for its Online Saver products, reducing the current base rate by 0.05% but raising bonus rates as a counter-balance.
Progress Saver accounts incurred a slight reduction in the bonus rate, bringing overall rates to 1.91%.
| ANZ | Current | New |
|---|---|---|
| ANZ Online Saver | ||
| Base rate | 1.30% | 1.25% |
| Bonus rate | 1.45% | 1.50% |
| Combined | 2.75% | 2.75% |
| ANZ Progress Saver | ||
| Base rate | 0.01% | 0.01% |
| Bonus rate | 2.00% | 1.90% |
| Combined | 2.01% | 1.91% |
Bank Australia trimmed rates on some of its term deposits. Interest rates on 3-5 month products with balances over $5,000 paid at maturity or annually were reduced from 2.55% to 2.40%.
Rates for 6-11 month term deposits with balances higher than $5,000 paid at maturity or annually were cut from 2.55% to 2.50%.
Term deposits with balances over $5,000 and interest paid monthly saw similar changes for both 3-5 month products (-0.15%) and 6-11 month products (-0.05%).
The bank's Bonus Saver Account and mySaver Account base rates remain unchanged at 0.15%, however, the bonus interest rate was brought down 0.20%, from 2.85% to 2.65%.
Bank Australia reduced its basic home loan rate, down 0.14%, from 3.73% to 3.59%.
| Bank Australia | Current | New |
|---|---|---|
| Term Deposits (balances over $5,000) - interest paid at maturity or annually | ||
| 3-5 months | 2.55% | 2.40% |
| 6-11 months | 2.55% | 2.50% |
| Term Deposits (balances over $5,000) - interest paid monthly | ||
| 3-5 months | 2.45% | 2.30% |
| 6-11 months | 2.45% | 2.40% |
Greater Bank reduced its term deposit interest rates for 1, 2, 3, 5 and 6 month terms while rates for 4 month term deposits increased.
However for 7-13 month term deposits on balances over $5,000 and paid at maturity, Greater Bank increased its rates.
| Greater Bank | Current | New |
|---|---|---|
| Term Deposits (balances over $5,000) - interest paid at maturity | ||
| 3 months | 2.60% | 2.50% |
| 6 months | 2.65% | 2.55% |
| 12 months | 2.50% | 2.55% |
Australian Unity also adjusted its Easy Saver rate from 3.15% to 3.10%.
Put more money in your pocket by comparing rates and fees from a range of different banks.
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