finder.com.au Interest Rate Update: Savings accounts coming down
- 9 providers including 3 major banks drop savings account rates since RBA rate cut announcement
- This compares to 33 lenders that announced variable home loan rate cuts, 29 from February 20
- Savers need to keep track of rates and expect cuts
February 19, 2015, Sydney – Comments by Michelle Hutchison, Money Expert at one of Australia's biggest comparison websites finder.com.au:
"Savers will have to work harder than ever this year, as savings account interest rates are already starting to take a dive, following the Reserve Bank cash rate drop on February 3, 2015.
"In fact, we've seen nine providers including three of the four major banks drop interest rates on some of their savings accounts since the cash rate cut, with some by more than the Reserve Bank's 0.25 percentage points according to finder.com.au.
"This is compared to 33 lenders announcing variable home loan rate drops, with 29 of which coming into effect between February 20 and 27.
"While it's expected that savings accounts will fall in line with the cash rate movements, it's interesting to see many of them falling before these lenders have passed on rate cuts to their lending products like home loans and personal loans.
"It's also interesting to see that these lenders have missed off any announcements about the bad news for savers of dropping their savings account rates but happy to announce the good news for lenders with dropping variable rate home loans.
"Financial institutions shouldn't feel like they can't disclose these rate changes like they do with their variable home loan announcements.
"It's a shame that they are potentially hiding these rate cuts by not announcing them. What this means is that savers need to keep track of their accounts and they can't assume that if they haven't seen a rate announcement that their rates won't be dropping.
"It also shows that more savings accounts could fall before the majority of variable rate home loan changes come into effect from February 20."
Here are the savings accounts we found that have fallen since the RBA rate cut:
- UBank dropped its savings accounts by 0.25 percentage points on February 18
- NAB dropped its savings accounts by 0.25 percentage points on February 18
- Commonwealth Bank's Goal Saver Account bonus interest dropped February 12, by 0.25 percentage points: base rate of 0.01%, bonus is now 3.19%
- Citibank dropped its Ultimate Business Saver by 0.35 percentage points on February 15
- ME Bank First Home Saver Account: dropped February 12 by 0.25 percentage points from 2.75% to 2.5%
- ANZ Online Saver and Progress Saver: both dropped by 0.25 percentage points on February 7
- ING Direct Savings Accelerator: dropped its base rate by 0.25 percentage points to 2.25% on February 7
- ME Bank Online Savings Account: dropped its base rate by 0.25 percentage points to 2.5% on February 7
- RaboDirect High Interest Savings Account DIY Super: dropped its base rate by 0.05 percentage points to 3.15% on February 5
- People's Choice Young Saver Account: dropped its bonus rate by 0.10 percentage points to 1.40% on February 5
- Commonwealth Bank Business Online Saver: also dropped its base rate by 0.15 percentage points to 2.10% on February 4
View a table of the lenders that have so far announced variable home loan rate cuts and we will be updating this page as we hear more announcements: www.finder.com.au/rba-cash-rate
For further information
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
finder.com.au is Australia's most visited comparison website and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. finder.com.au compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using finder.com.au to find better (Source: Google Analytics).