The Reserve Bank of Australia has made its second cut to the official cash rate for 2025, taking it to 3.85% after a previous cut in February.
The 25-basis point cut was widely anticipated but is not good news for savers looking for handsome interest on their savings accounts.
Savings.com.au will provide rolling updates to savings accounts rate changes in response to the RBA rate cut on 20 May and are current as at the date noted below.
Article last updated: 20 May 2025
Key notes:
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p.a. = per annum (interest paid over the period of a year)
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Basis points: 1 basis point = 0.01%
Westpac
First-mover Westpac has made the unusual move to cut its savings accounts rates before announced any changes to its home lending variable rates.
Effective from Friday 30 May, the standard variable bonus rate on Westpac Life accounts will be cut 25 basis points to 4.10% p.a. (from 4.35% p.a.) while the standard variable rate will remain unchanged at 0.40% p.a.
That takes the total variable interest rate available to 4.50% p.a. (down from 4.75% p.a.).
The Westpac eSaver account will see its five-month introductory fixed rate drop to 3.15% p.a. (from 3.40% p.a.) while the standard variable rate will remain unchanged at 1.00% p.a.
For new online eSaver customers, the highest total variable rate (available for new eSaver accounts only) will drop to 4.50% p.a. (from 4.75% p.a.) with the online bonus rate remaining unchanged at 0.35% p.a.
The Spend&Save bonus rate for (18-29 year olds) has been boosted by 25 basis points to 0.50% p.a. (from 0.25% p.a.), with the headline rate remaining at 5.00% p.a.
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