Rabobank has dropped its eye-catching introductory High Interest Savings Account rate to 5.00% p.a. - down from a market-leading 5.15% p.a. - on balances up to $250,000.
The rate applies to new accounts for four months before dropping to the new standard variable rate of 3.45% p.a. (a 0.25% p.a. cut from 3.70% p.a.).
At the same time, the introductory rate for new accounts will be boosted to 1.55% p.a. (up 0.10% p.a. from 1.45% p.a.), meaning a 0.15% cut overall.
The standard variable rates for higher balances is now 2.70% p.a.
See also: The different types of savings account interest rates]
Rabo's Premium Saver also cut
The maximum rate on Rabo's Premium Saver account has also been cut to 4.65% p.a. on balances up to $250,000, also a 0.15% p.a. drop on the old rate of 4.80% p.a.
The Premium Saver account requires customers to grow their account balance by $200 a month to achieve the top rate.
However, the base rate has been slashed by 0.30% p.a. - now 0.60% p.a., down from the previous rate of 0.90% p.a.
This makes it more important to fulfil the monthly criteria.
The rate for higher account balances - over $250,000 - is now 3.00% p.a.
Which bank is offering the highest savings rate on the market?
The changes leave Bankwest's Easy Saver account has a standalone in offering the market's highest savings account interest rate of 5.15% p.a.
The rate applies to balances up to $250,000.99 for new customers for the first four months followed by an ongoing variable rate of 3.60% p.a.
Balances $250,001 and over earn an introductory rate of 4.30% p.a. before reverting to a rate of 1.60% p.a.
It's worth noting Bankwest, wholly owned by CommBank, is yet to adjust its savings rates in the wake of the August cash rate cut - as is CommBank.
After May's RBA cut, CommBank lowered savings rates when its home loan cuts became effective.
They're due to take effect on Friday 22 August.
See also: Which banks are lowering savings rates after the RBA's August rate cut?
High interest savings accounts tumble
The past few days have seen the market's highest-paying savings accounts cut their interest rates.
Late Friday, ING cut the maximum rate on its popular Savings Maximiser account to 4.80% p.a., down from 5.00% p.a.
On Tuesday, NAB's popular Ubank online Save account cut its everyday bonus rate but left its four-month introductory rate unchanged at 5.00% p.a.
The Ubank cut took the everyday bonus rate to 4.35% p.a., down 0.25% p.a. from 4.60% p.a., on account balances up to $1 million.
Both ING's Savings Maximiser and Ubank's Save accounts require customers to meet monthly conditions to achieve their bonus rates.
ING pays a base rate of 0.05% p.a. to customers not meeting the requirements while Ubank pays 0.00% interest.
From 1 October, Ubank's Save account will add an extra balance growth requirement to achieve its bonus rates.
What are savings rates on unconditional accounts?
Macquarie Bank is now offering a four-month introductory rate of 4.60% p.a. on its Savings Account on balances up to $250,000.
It reverts to a variable rate of 4.25% p.a. on balances up to $2 million with no monthly conditions attached.
AMP Bank's new app-based GO Save product also offers 4.25% p.a. with no monthly conditions.
Australian Unity's Freedom Saver account is currently offering 4.60% p.a. for balances up to $50,000 and 4.50% p.a. for balances between $50,000 - $250,000 with no deposit or withdrawal conditions.
It pays 3.75% p.a. for balances $250,000 - $500,000 and 3.25% p.a. for balances between $500,000 - $5 million.
The Freedom Saver account sees the tier rate apply to the entire account balance, not for portions above the previous rate tier.
Australian Unity's savings account rates are yet to decrease in-line with the RBA's August cash rate cut.
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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 |
