Savings account interest rate updates: April 2017
The interest rates for term deposits didn’t change, but many savings accounts saw a decrease in April.
Savings accounts interest rate changes
CBA was the only Big Four bank to tweak its interest rate for savings accounts in April, and surprisingly, it was an increase rather than a reduction. The bank increased the introductory interest rate on its NetBank Saver account by 5 basis points to 2.55% p.a. The only other increase we saw was from HSBC which increased the introductory interest rate on its Serious Saver account from 2.25% to 2.50% p.a for the first four months.
Unfortunately for savers, all other interest rate changes in April were a reduction. Credit Union SA reduced the variable interest rate on its Netsave account by 15 basis points to 2.75% p.a and CUA reduced the rates on its eSaver Boost and eSaver Reward account from 2.95% to 2.85% p.a. Despite these drops, these interest rates remain quite competitive for today’s low-interest rate market.
ING reduced the standard base interest rate on its Savings Maximiser account from 1.60% to 1.50%. However, it also increased the bonus interest rate for this account from 1.40% to 1.50% p.a. Customers with this account will only be affected if they don’t meet the conditions for bonus interest where they will now earn a lower base interest rate.
The smallest drop was by Rabo Direct which reduced the interest rate on its Premium Saver account by 5 basis points to 2.55%. Meanwhile, the largest decline was by Bank of Sydney which reduced the interest rate on its Smart Net account by a significant 35 basis points from 1.30% to 0.95% p.a.
|Provider||Product||Current maximum variable rate||Previous maximum variable rate|
|Auswide Bank||Bonus Plus Saver Account||1.60%||1.75%|
|Bank of Sydney||Smart Net Account||0.95%||1.30%|
|Credit Union SA||Netsave account||2.75%||3.00%|
|My Credit Union||My Net Reward Saver||1.25%||1.50%|
|My Credit Union||My Serious Savings||1.00%||1.25%|
|RaboDirect||High Interest Savings Account||1.90%||2.00%|
|Rabo Direct||Premium Saver||2.50%||2.55%|
Savings accounts special offer changes
St. George didn’t reduce its interest rates, but it did scrap its offer for new customers. Previously, the bank offered an additional $50 to new customers who deposited $500 within 60 days of opening a new Complete Freedom account, and this is no longer the case.
ANZ’s promotion to attract new customers, that offered a $100 voucher to customers who opened an Access Advantage account by 30 April 2017 and used the Visa Debit card 3 times by 4 June 2017, has also now ended.
Curious to see what happened in March? Read our round up of March interest rate changes across savings account, term deposits and transaction accounts.