Death by a thousand cuts: NAB, Westpac, ANZ, CommBank cut savings rates ahead of RBA decision

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on October 30, 2020
Death by a thousand cuts: NAB, Westpac, ANZ, CommBank cut savings rates ahead of RBA decision

Photo by Luke White on Unsplash

Interest rates on savings accounts are on the chopping block as the banks prepare for a potential Melbourne Cup RBA rate cut.

October has been a big month for rate cuts, with all of the big four banks and many smaller banks making pre-emptive savings account rate cuts as a November RBA rate cut looks increasingly likely.

NAB is the most recent big four bank to announce it will be cutting interest rates on its savings accounts.

From today, NAB will reduce its total savings account interest rate by 10 basis points on its Reward Saver and iSaver accounts. 

The new rates, effective 30 October 2020 are:

  • NAB Reward Saver - 0.70% p.a (0.05% p.a base rate + 0.65% p.a bonus rate that applies if you meet certain conditions throughout the month)
  • iSaver - 0.75% p.a (0.05% p.a base rate + 0.70% p.a introductory rate for the first four months)

The changes mark the second time this month NAB has cut savings account interest rates. 

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest non-introductory and introductory interest rates on the market.

Commonwealth Bank savings account rate cuts

Commonwealth Bank recently sliced rates by 0.05% on a few of its savings accounts, including its kids savings account linked to the popular Dollarmites program.

Commbank's new savings account interest rates are:

  • NetBank Saver - 0.85% p.a (0.05% p.a base rate + 0.80% p.a intro rate for the first five months)
  • GoalSaver - 0.50% p.a (0.10% p.a base rate + 0.40% p.a bonus rate on balances under $50,000 applicable when conditions are met each month)
  • GoalSaver - 0.85% p.a (0.10% p.a base rate + 0.75% p.a bonus rate on balances between $50,000 to $1 million applicable when conditions are met each month)
  • YouthSaver - 1.00% p.a (0.10% p.a base rate + 0.90% p.a bonus rate applicable when conditions are met each month)

Westpac savings account rate cuts

Westpac has also carved interest rates on a number of its savings accounts this month, after also cutting savings account rates in September. 

Westpac's new rates are:

  • eSaver - 0.75% p.a (0.05% p.a base rate + 0.70% p.a intro rate for first five months)
  • Life - 0.75% p.a (0.40% p.a base rate + 0.35% p.a bonus rate applicable if you meet conditions each month)
  • Bump - 1% p.a (0.55% p.a base rate + 0.45% p.a bonus rate)

ANZ savings account rate cuts

Earlier this month, ANZ reduced its savings account interest rates by 0.15% p.a on its Online Saver and Progress Saver accounts.

ANZ's new rates are:

  • Online Saver - 0.65% p.a (0.05% p.a base rate + 0.60% p.a intro rate for three months)
  • Progress Saver - 0.70% p.a (0.01% p.a base rate + 0.69% p.a bonus rate)

Neobanks, smaller banks bow to low interest rate pressures

It appears customers of neobanks aren't immune to interest rate cuts on savings accounts, despite these banks offering some of the highest interest rates for savers on the market.

Notable rate cuts to interest rates on savings accounts in the last month include:

The recent cuts to savings accounts appear to be a pre-emptive move by the banks ahead of the RBA's meeting on Tuesday 3 November.

Out of 24 Bloomberg-polled analysts, 14 expect the RBA to cut the cash rate by 15 basis points on Melbourne Cup day.

This would take the official cash rate to a new record low of 0.10% - not far away from negative territory.

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Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

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