Banks passing on the May RBA cut on savings accounts
Can you still get an interest rate above inflation on your savings account? We've rounded up full details on every bank that has announced changes.
See which banks have passed on the rate cut on savings
The official RBA cash rate is now 1.75%, bringing Australia's official cash rate to a new record low. Prior to the announcement, a number of banks announced it would reduce its interest rates for savings accounts. We've already noted the banks that saw the rate cut coming in this post.
Unlike home loans rates, savings account rate announcements are not made within moments of the official RBA announcement. Savers don't like hearing that they're about to lose even more money. ANZ, however, did tweet that it would increase its 4 month term deposit rate by 1%. That has been the only rate increase so far. Out of the big four, there haven't been any announcements so far from the Commonwealth Bank and Westpac.
We'll be updating as additional banks make changes, so keep checking regularly. Meanwhile you can read about getting a competitive interest rate on your savings, despite the current economic climate.
The winners and losers if the May 2016 RBA Rate Cut
The clear winners with the RBA rate cut are homeowners who have a variable rate home loan, since most banks lowered their rates following the announcement. Existing homeowners are now in a favourable position to refinance and lock in a low fixed interest rate. Australian exporters also have a reason to be happy with a sharply declining Australian dollar, meaning other countries want to buy more Australian goods since it's cheaper.
Savers don't benefit from a rate cut. As investors are less inclined to save with a savings account or term deposit, it is assumed that the pressure will drive investors into property. This gradually pushes up property prices even further and could hurt first home buyers.
Pensioners who often rely on the interest earned on their previous investments is also likely to receive less interest. It maybe a good time to consider diversifying into more aggressive investments to earn a higher return.
Australian importers are also at a disadvantage. The falling Australian dollar has meant that it's more expensive to buy overseas goods.
We've listed all the banks with announced and implemented changes below.
| Bank | Product | Change | New rate | Effective date |
|---|---|---|---|---|
| ING Direct | Savings maximiser | -0.25% | 3.00% | 6 May 2016 |
| Macquarie Bank | Cash management account | -0.25% | 1.65% | 5 May 2016 |
| Macquarie Bank | Cash XL | -0.25% | 1.65% | 5 May 2016 |
| Macquarie Bank | Savings account | -0.25% | 1.75% | 5 May 2016 |
| ANZ | 4 Month advance term deposit | +1.00% | 3.00% | 5 May 2016 |
| ANZ | Advance term deposit ($5k<$100k) | -0.25% | 1 month - 1.75%, 2 months - 1.75%, 5 months - 1.75%, 7 months - 1.75%, 8 month - 1.75%, 9 months - 1.75%, 10 months - 1.75%, 11 months - 1.75%, 18 months - 2.35%, 24 months - 2.45%, 36 months - 2.50%, 48 months - 2.55% and 60 months - 2.75% | 6 May 2016 |
| ANZ | Advance term deposit (50+) | -0.25% | 1 month - 1.95%, 2 months - 1.95%, 5 months - 1.95%, 7 months - 1.95%, 8 month - 1.95%, 9 months - 1.95%, 10 months - 1.95%, 11 months - 1.95%, 18 months - 2.55%, 24 months - 2.65%, 36 months - 2.70%, 48 months - 2.75% and 60 months - 2.95% | 6 May 2016 |
Announcements
BankwestHero Saver-0.25%2.90 May 2016
| Bank | Product | Change | New rate | Effective date |
|---|---|---|---|---|
| ANZ | Online Saver | -0.25% | 2.90% | 13 May 2016 |
| ANZ | Progress Saver | -0.25% | 2.26% | 13 May 2016 |
| Bank of Queensland | Term deposit | -0.25% | 1 month - 2.00%, 2 month - 2.00%, 3 month - 2.85%, 4 month - 2.00%, 5 month - 2.00%, 6 month - 2.95%, 7 month - 2.00%, 8 month - 2.00%, 9 month - 2.75%, 10 month - 2.00%, 11 month - 2.00%, 12 month - 2.85%, 24 month - 2.70% and 36-48 month - 2.75% | 11 May 2016 |
| Bankwest | 3 Month term deposit | -0.10% | 2.90% | 13 May 2016 |
| Bankwest | 6 and 12 Month term deposit | -0.15% | 6 month - 2.90%, 12 month - 2.85% | 13 May 2016 |
| Bendigo Bank | Christmas Club Account | -0.20% | 0.50% | 13 May 2016 |
| Bendigo Bank | EasySaver Account | -0.25% | 1.50% | 13 May 2016 |
| Bendigo Bank | Shareholder Account | -0.20% | 0.10% | 13 May 2016 |
| Bendigo Bank | CommunitySaver Account | -0.25% | 1.50% | 13 May 2016 |
| Bendigo Bank | PiggySaver Account | -0.25% | 1.50% | 13 May 2016 |
| CUA | eSaver Reward Account | -0.21% | 2.85% | 13 May 2016 |
| CUA | eSaver Plus Account | -0.15% | 2.75% | 13 May 2016 |
| CUA | Youth eSaver Account | -0.25% | 4.75% | 13 May 2016 |
| Greater Bank | Retirement Plus | -0.25% | $1 to $2,000 - 0.25%, $2,000 to $48,600 - 1.25%, $48,600 and above - 2.75% | 16 May 2016 |
| Greater Bank | 1-23 Month term deposit | -0.25% | 1 month - 1.75%, 2 month - 1.75%, 3 month - 2.45%, 4 month - 2.45%, 5 month - 2.65%, 6 month - 2.75%, 7 month - 2.45%, 8 month - 2.45%, 9 month - 2.75%, 10 month - 2.45%, 11 month - 2.45%, 12 month - 2.75%, 13 month - 2.75% and 14-23 month - 2.45% | 9 May 2016 |
| Greater Bank | 3-5 Year term deposit | -0.30% | 3 year - 3.20%, 4 year - 3.20% and 5 year - 3.20% | 9 May 2016 |
| Greater Bank | Bonus Saver | -0.25% | 2.45% | 16 May 2016 |
| Greater Bank | Life Saver | -0.30% | 3.20% | 16 May 2016 |
| Illawarra | Term deposit | -0.20% | 1 month - 1.50%, 2 month - 1.50%, 3 month - 1.50%, 4 month - 1.50%, 5 month - 1.50%, 6 month - 1.50%, 7 month - 1.50%, 8 month - 1.50%, 9 month - 1.50%, 10 month - 1.50%, 11 month - 1.50%, 12 month - 1.50% | 16 May 2016 |
| Illawarra | Saver | -0.20% | 2.10% | 16 May 2016 |
| Illawarra | Everyday Plus | -0.20% | $0 to $2,000 - 0%, $2,000.01 to $50,000 - 1.70%, $50,000.01 and above - 3.00% | 16 May 2016 |
| IMB | Cash Management | -0.25% | $5,000 to $9,999.99 - 0.25%, $20,000 to $49,999.99 - 0.75%, $50,000 to $99,999.99 - 0.75%, $100,000 to $249,999.99 - 1.25%, $250,000 and above - 1.50% | 16 May 2016 |
| UBank | USaver with Ultra Bonus | -0.25% | 3.12% | 9 May 2016 |
| UBank | USaver Reach | -0.25% | 2.56% | 9 May 2016 |
| UBank | USaver SMSF | -0.25% | 2.31% | 9 May 2016 |
| NAB | Cash manager | -0.25% | 1.25% | 9 May 2016 |
| NAB | Business cash manager (>$10k) | -0.25% | 1.05% | 9 May 2016 |
| NAB | Business interest account (>$50k & <$100k) | -0.25% | 0.75% | 9 May 2016 |
| HSBC | Serious Saver | -0.25% | 2.50% | 9 May 2016 |
| Macquarie Bank | Term deposit (<$1 million) | -0.15% | 1 month - 1.90%, 2 month - 1.90%, 3 month - 2.65%, 4 month - 2.65%, 6 month - 2.65% and 9 month - 2.65% | 9 May 2016 |
| Macquarie Bank | Term deposit ($1 million - $3 million) | -0.25% | 1 month - 1.80%, 2 month - 1.80%, 3 month - 2.00%, 4 month - 2.00%, 6 month - 2.00% and 9 month - 2.00% | 9 May 2016 |
| Macquarie Bank | Term deposit (>$3 million) | -0.25% | 1 month - 1.80%, 2 month - 1.80%, 3 month - 2.00%, 4 month - 2.00%, 6 month - 2.00% and 9 month - 2.00% | 9 May 2016 |
| ME | Online savings account | -0.15% | 3.55% | 9 May 2016 |
| NAB | Reward saver | -0.25% | 2.85% | 9 May 2016 |
| NAB | iSaver | -0.25% | 2.25% | 9 May 2015 |
| Commonwealth Bank | Pensioner Security Account | -0.25% | 2.50% | Already in place |
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