Westpac further reduces savings account interest rates

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on February 13, 2020
Westpac further reduces savings account interest rates

Photo by Rishab Lamichhane on Unsplash

Westpac is the latest of the big four banks to cut interest rates on its savings accounts.

Not even a month after ANZ and NAB swung the axe on their popular savings account interest rates, Westpac has joined the rate cutting party. 

The major bank has cut interest rates on its Westpac Life Account and Westpac eSaver Account. 

The bonus rate on the Westpac Life Account has been dropped from 1.20% p.a. to 1.10% p.a. This brings the maximum ongoing interest rate down from 1.65% p.a. to 1.55% p.a.

To get the bonus rate, customers are still required to make at least one deposit per month, ensure the account balance is higher at the end than it was at the beginning of the month, and keep the account balance above $0 at all times. 

The eSaver Account saw its introductory bonus rate cut from 1.56% p.a. to 1.45% p.a. This means customers can now only earn a maximum of 1.55% p.a. on their savings for the first five months before the rate reverts back to the base rate of 0.10% p.a.

The move from Westpac is just the latest in a slew of lenders cutting their savings account interest rates.

Last month, both NAB and ANZ cut already dismal interest rates across their popular savings accounts to new lows.

But there are still competitive savings account interest rates, if consumers know where to look.

Neobanks like Xinja currently offer some of the highest non-introductory savings account interest rates on the market, with Xinja offering 2.25% p.a. on its newly launched 'Stash' product. 

The table below displays a snapshot of savings accounts with some of the highest non-introductory interest rates on the market. 


4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Online Saver (Amounts < $499999)

    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    High Interest Savings Account (< $250k)

      4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Online Saver ($1-$100k)

        0100$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Mighty Saver

          000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          Online Savings Account (<$250k)

            4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

            Lifestyle Account (< $75k)

              000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

              Bonus Saver Account (Amounts < $100k)

                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. Rates correct as of June 27, 2022. View disclaimer.

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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 Savings.com.au 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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