Photo by Rishab Lamichhane on Unsplash
Westpac, as well as its subsidiary RAMS, have both cut savings account interest rates today by 25 basis points.
This follows savings account rate cuts from ANZ and NAB on 13 March and Commonwealth Bank's cuts on 9 March.
Commonwealth Bank and NAB both cut rates by 25 basis points - the same as the Reserve Bank's cut to the cash rate - while ANZ decided to reduce rates for savers by 35 points, much more than what it passed onto home loan customers.
The savings account cuts from Westpac and RAMS today match the cuts these banks officially passed onto home loan customers today. .
The table below displays a snapshot of savings accounts with some of the highest non-introductory interest rates on the market.
rate p.a.
rate p.a.
rate p.a.
*Data accurate as at 01 June 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.
Westpac savings account rate cut
Westpac's two savings accounts, the Westpac Life and eSaver accounts, have had interest rates cut by 25 basis points in total.
The Westpac Life account has been reduced from a total rate of 1.55% p.a. to 1.30% p.a.
The changes to this account are two fold:
- The base interest rate has been cut by 5 basis points to 0.40% p.a.
- The bonus interest rate has been cut by 20 basis points to 0.90% p.a.
To earn this bonus interest, customers simply need to deposit any amount into the account during the month.
Westpac's introductory account, the eSaver, has also had its rate reduced to a maximum of 1.30% p.a.
However, 1.25% p.a of this is only for the first five months: After that, the rate falls to a measly 0.05% p.a.
Westpac has been contacted for comment on these changes
The table below displays a snapshot of savings accounts from the big four banks.
rate p.a.
rate p.a.
rate p.a.
*Data accurate as at 01 June 2020. Rates based on a savings balance of $10,000. Introductory bonus interest rates not included. Sorted by total interest rate, then by provider name (A-Z). Refer to providers' websites for bonus rate conditions.
RAMS savings account rate cut
RAMS, which is owned by Westpac, also cut rates to its RAMS Saver base rate by 25 basis points, while the bonus rate remains unchanged.
The base rate fell to 0.75% p.a. means RAMS now has a total interest rate of 1.65% p.a.
In a note sent to customers, RAMS said the bonus interest is payable on account balances up to $500,000 if:
• you deposit a minimum total of $200 a month;
• you make no withdrawals in the month; and
• you have an account balance that does not fall below $200 or exceed $500,000 at any time during the month.
It also provided the following breakdown of how interest rates change based on the amount deposited in the account.
|
Account Balance |
Base Rate (variable) |
Bonus Rate (variable) |
Rate with bonus |
|
$0 - $500,000 |
0.90% p.a. |
0.75% p.a. |
1.65% p.a. |
|
$500,000.01 - $5,000,000 |
0.90% p.a. |
0.00% p.a. |
0.90% p.a. |
|
$5,000,000.01+ |
0.00% p.a. |
0.00% p.a. |
0.00% p.a. |
Source: RAMS
Both of these banks cut interest rates in February as well, despite the Reserve Bank of Australia holding the cash rate steady that month.
On February 13, the Westpac Life total interest rate fell by 10 basis points from 1.65% p.a, while RAMS also reduced by 10 basis points on 28 February.
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