Last week, the Reserve Bank of Australia slashed interest rates by 0.25 per cent to a record-low of 1.25 per cent, but not all the banks passed on the entire rate cut.
ANZ and Westpac passed on a 0.18 and 0.20 per cent rate cut, while the Commonwealth Bank of Australia and NAB passed on the full 0.25 per cent cut.
It’s not surprising that not all the major banks passed the rate cut on to their variable home loan rates for customers though, given they’ve only passed on the full cut with 92 per cent accuracy since 1990.
Related article: Has your bank passed the RBA interest rate cut on?
Related article: Will the banks cut rates if the RBA does?
But Finder revealed that the average online savings account rate follows the cash rate with 99 per cent accuracy, meaning banks are quicker to take the interest rate off your savings than they are to take it off of your home loan.
Today, CBA and NAB have announced they’ve made rate cuts to some of their savings accounts.
According to Canstar, CBA’s Netbank Saver’s base interest rate took a 0.20 per cent hit, with the 5-month introductory total interest rate dropping by 0.11 per cent.
Their GoalSaver bonus interest rate dropped by between 0.20 per cent and 0.30 per cent - depending on the balance.
NAB’s introduced cuts of up to 0.20 per cent to its savings accounts.
Its iSaver (flexible savings account) base rate decreased by 0.20 per cent, with the 4-month introductory total interest rate dropping by 0.05 per cent.
The Rewards Saver (bonus savings account) base rate dropped by 0.20 per cent, with the bonus interest rate falling by 0.05 per cent, which amounts to a total 0.25 per cent cut to the total rate.
Take a look at the new interest rates on flexible savings accounts from the major banks:
Now take a look at the new interest rates on bonus savings accounts from the major banks:
If you don’t like the look of your new rate, here are the banks with the highest savings rates on offer:
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