CBA slashes interest rates in popular savings accounts

The Commonwealth Bank has announced another interest cut in savings accounts, which are set to impact young people saving for their first home.

The Announcement:

Australia’s biggest bank, CBA, has today cut its savings rates by up to 0.07 per cent.

The RBA has not moved the cash rate since 3 November 2020, however the bank has made up to six cuts on some of its savings rates in this time. research director, Sally Tindall, said: “Over the last 10 months, CBA has been quietly chipping away at its savings rates. While the cuts have all been relatively small, they’re starting to add up.”

“If you have money in the bank, make sure it is working as hard as it possibly can,” she said.

“Australia’s largest bank might be paying peanuts to its savings customers, but other banks are still offering rates four times higher if you shop around.”

Today’s cuts

Savings accountOld max rateNew max rateChange
Youthsaver (under 18yrs)0.60%0.55%-0.05%
NetBank Saver0.40% for 5 mths then 0.05%0.33% for 5 mths then 0.05%-0.07% to intro rate
Note: To qualify for max rate for GoalSaver and YouthSaver balance must be higher at end of month.

Cuts since 1 November 2020, CBA vs cash rate

Max rate
1 Nov 2020
Max rate
CBA GoalSaver0.75%0.30%-0.45%
CBA Youthsaver (under 18 yrs)1.00%0.55%-0.45%
CBA NetBank Saver0.75% (5 mths)0.33% (5 mths)-0.42% (intro rate only)
Cash rate0.25%0.10%-0.15%
Note: The max rate on the GoalSaver on 1 November was for balances of $50K and over. The rate for under $50K was 0.50%. database shows there are nine banks offering ongoing savings rates over 1 per cent.

“Young savers can get access to even higher rates if they know where to look. Westpac is handing out up to 3 per cent to Australians aged 18 to 29. That’s staggering considering CBA’s offering the same cohort a maximum ongoing rate of just 0.3 per cent.

“Just beware, most savings accounts come with fiddly terms and conditions to get the maximum rate, so make sure you qualify,” she said.

Big four bank: conditional savings rates

BankAccountMax rate
NABReward Saver0.30%
ANZProgress Saver0.35%
Source: Conditions apply for max rate.

Big four banks standard savers

BankProductIntro rate (3-5 mths)Ongoing rate
CBANetBank Saver0.33%0.05%
ANZOnline Saver0.30%0.05%
Source: Intro rate terms – CBA & Westpac 5 months, NAB 4 months, ANZ 3 months.

Highest ongoing savings accounts (no age restrictions)

BankMax rate
AMP Bank1.25%
MyState Bank, Virgin Money, 86 4001.20%
Source: $25k balance. Conditions apply for max interest rate.

Young Adults: highest ongoing savings rates

BankAccountMax rate
Westpac LifeAges 18 to 29 (up to $30K)3.00%
BOQ Fast Track StarterAges 14 to 24 (up to $10K)2.50%
Source: Conditions apply for max interest rate.

Source: Rate City

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