Australia's fifth-largest bank has passed on the full 25 basis point rate to its savings account customers, effective immediately.
The four-month welcome rate has dropped to 5.10% p.a. on balances up to $250,000 with the variable ongoing rate falling to 4.75% p.a. on balances up to $1 million.
The transaction account, notable for being one of the only such products in Australia to bear an interest rate, will also be lowered by 25 basis points to 2.50% p.a. on all balances up to and over $1 million.
This takes effect on 28 February, and follows an out-of-cycle cut to the rate in October when it was cut by 2.00% (200 basis points).
Shake up in savings account market
Macquarie was among the last of market-leading high interest savings account contenders to announce its rate changes.
Earlier on Thursday, ING announced cuts to its market-topping Savings Maximiser account interest rate, effective Friday 28 February.
The Dutch-owned online bank will cut its maximum rate by just 10 basis points to 5.40% p.a., down from 5.50% p.a.
The Savings Maximiser bonus rate will increase 40 basis points to 5.35% p.a. with the standard base rate plummeting by 50 basis points to 0.05% p.a. from 0.55% p.a.
The 5.40% p.a. maximum rate, with conditions, remains among the highest savings accounts rates available on the market.
See also: Which banks are lowering savings rates after the RBA's February rate cut?
How does Macquarie compare to the big banks?
Macquarie's new ongoing rate of 4.75% p.a. is in line with the best rates offered by the majority of the big four.
Westpac's Life and eSaver accounts, NAB's Reward and iSaver, and ANZ's digital-only ANZ Plus Save accounts all offer a top rate of 4.75% p.a. if certain conditions are met.
However, Macquarie continues to apply no monthly deposit conditions in achieving its 4.75% p.a. ongoing rate.
The top rate on CommBank's GoalSaver savings account is now 4.65% p.a., also with conditions attached.
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Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.
| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
0.05% p.a. Bonus rate of 5.30% Rate varies on savings amount. | 5.35% p.a. | $1,097 | – | $0 | $249,999 | $0 | $0 | $0 |
| Promoted | Disclosure | ||||||||
2.25% p.a. Bonus rate of 3.15% Rate varies on savings amount. | 6.00% p.a. Intro rate for 4 months then 5.40% p.a. | $1,134 | 4 months | $0 | $499,999 | $0 | $0 | $0 | Promoted | Disclosure | |||||||||
4.00% p.a. | 5.90% p.a. Intro rate for 4 months then 4.00% p.a. | $936 | 4 months | $0 | $249,999 | $0 | $1 | $0 | Disclosure |
