Two non-major banks have taken the knife to savings account rates.
HSBC has cut its Serious Saver introductory rate by 35 basis points, effective from today, taking the rate from 2.10% p.a. to 1.75% p.a.
The introductory rate is available for four months, at which point it reverts to an ongoing rate of 0.15% p.a.
The rate change will apply to new and existing customers.
Need somewhere to store cash and earn interest? The table below features introductory savings accounts with some of the highest interest rates on the market.
*Data accurate as at 21 September 2020. Rates based on a savings balance of $10,000. Sorted by total interest rate. Refer to providers' websites for bonus rate conditions. Note that the base rate will apply once the introductory term has passed.
When asked why the cut had been made and if customers could expect more in the future, a HSBC Spokeswoman had this to say.
"We’ve reduced the four-month introductory rate on our Serious Saver product from 2.10% p.a. to 1.75% p.a. for new and existing customers," she said.
"We always monitor the interest rates on our products in line with market conditions."
According to Savings.com.au research, HSBC previously had one of the most competitive introductory rates on the market, but slips down the list with this cut.
The Serious Saver account has no monthly account fee and has no minimum or ongoing balance required.
The introductory rate and ongoing rate are applicable every month you don't make a withdrawal and apply for balances up to $1 million only.
RAMS shears rates
RAMS has once again taken the clippers to its Saver Account, cutting the maximum interest rate by 10 basis points, from 1.20% p.a. to 1.10% p.a.
The cut applies to the bonus interest rate, which has been cut from 0.75% p.a. to 0.65% p.a.
The base interest rate remains unchanged at 0.45% p.a.
The bonus interest rate is applicable on balances up to $500,000 when you make no withdrawals in a month and deposit at least $200 in that month.
Amounts above $500,000 will not receive any interest.
Not too long ago RAMS had one of the more competitive savings account rates on the market, sporting a 2.80% p.a. interest rate in June of last year.
With the Reserve Bank cutting the cash rate for a total of 125 basis points since then, savings account rates have tumbled.
However, RAMS has tumbled more than most, cutting their savings account rate by a total of 170 basis points in the same period.
Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest non-introductory interest rates on the market.
*Data accurate as at 21 September 2020. Rates based on a savings balance of $10,000. Introductory bonus interest rate products not included. Sorted by total interest rates. Refer to providers' websites for bonus rate conditions.
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