RBA rate cut: Who has the best savings account rate now?
The RBA has cut the cash rate for the second time this year, so you can expect to see your savings account rate drop lower as a result.
As widely expected, the RBA has today cut the cash rate by 25 basis points from 4.10% down to 3.85%.
It's the second cut to the cash rate this year, follow February's 25 basis point cut which was the first in several years.
This is excellent news for people with mortgages as banks will, once again, begin to reduce home loan rates (see which lenders passed on the rate cut last time).
But banks will also start cutting their savings account rates, which isn't great if you've got cash in the bank that you're trying to grow.
What impact will the rate cut have on my savings?
The impact of a 25 basis point cut on your savings will depend on your balance size, and how much you contribute each month.
The average Australian has around $33,000 in cash savings. Let's assume you're depositing $1,000 a month and you're currently getting one of the highest rates on offer at 5.00% p.a.
If your savings account rate was cut to 4.75% p.a, your interest earnings for the year would drop from $1,967.20 to $1,866.81. That's $100 less interest for the year.
This is also on top of the 25 basis point rate cut we already had in February.
Want to earn more interest?
Compare current high interest savings account rates now.
Who has the best savings account rate now?
The best savings rates are all around the 5% mark now, however after today's rate cut it's going to become harder to find an account offering more than 5% p.a.
Here are 5 savings accounts with some of the highest rates on offer right now.
1. ING Savings Maximiser: 5.40% p.a.
Earn 5.40% p.a. on balances up to $100,000. To earn this rate you need to deposit $1000 a month, grow your balance during the month and make 5 transactions from your ING Orange Everyday Account.
2. MOVE Bank Growth Saver: 5.25% p.a.
Earn 5.25% p.a. on balances up to $25,000 when you deposit $200 each month and make no withdrawals. This account could suit you if you've got a smaller savings balance and can't stick to a large monthly deposit requirement.
3. Bank of Queensland Future Saver Account
Earn 5.25% p.a. on balances up to $50,000 when you deposit $1000 and make 5 transactions during the month from the linked Bank of Queensland transaction account. You also need to be aged between 14 and 35.
4. Ubank Save Account
Earn 5.10% p.a. on balances up to $100,000 when you deposit $500 each month. You can make withdrawals and still be eligible for the bonus interest.
5. Great Southern Bank Goal Saver
Earn 5.10% p.a. on balances up to $50,000 when you deposit $500 a month and make 5 debit card transactions. You also need to be aged between 18-24.
If these accounts aren't right for you, check out a full list of high interest savings accounts to find one that better suits your savings style.
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