Household savings have skyrocketed since the pandemic struck, so there’s little need for banks to compete all that much for depositors. This is reflected in another month of deep cuts. Even Australia’s neobanks, which had made a name for themselves on the back of their high rates, have lost a lot of their sheen.
Among the major banks, Commonwealth Bank cut the introductory rate on its NetBank Saver from 0.90% to 0.75%. NAB cut the ongoing bonus rate on its Reward Saver from 0.80% to 0.70%. Westpac cut both its headline rates by 10 bp, bringing the Life ongoing bonus rate and eSaver intro rate to 0.75%. And ANZ cut both its ongoing and introductory bonus rates by 15 bp, leaving it’s Progress Saver bonus rate and Online Saver intro rate at 0.70% and 0.65%, respectively.
The Westpac Life account continues to lead among offerings from the major banks, giving savers interest rates of 0.75% p.a. so long as they make a deposit each month. For those aged between 18 and 29, the maximum rate available jumps up to a staggering 3.00% p.a. However, this only applies to balances up to $30,000, and the monthly conditions are a bit more numerous.
For Australians who don't meet the age requirements for the Life account, there are still some worthwhile options. Up currently offers an ongoing bonus rate of 1.60% p.a., so long as monthly conditions are met. Rabobank offers an introductory rate of 2.00% p.a. - the highest in our database - which is available for the first 4 months before reverting to 0.55% p.a. And the Macquarie savings account comes with a base rate of 1.35% p.a., which is unconditional for balances up to $1 million.
^See information about the Mozo Experts Choice Savings accounts Awards
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