Australian savers are being warned their money will soon be worth less when kept in the bank. The Reserve Bank of Australia (RBA) is expected to cut interest rates on Tuesday, and major banks like NAB and Westpac are already trimming rates on their term deposits.

NAB cuts its flagship 7-month term deposit by 10 basis points, taking its leading rate down to 4.10 per cent last week. Westpac, along with subsidiaries St.George, Bank of Melbourne and BankSA, also cut their 11-month special offer by 10 basis points down to 4.10 per cent for deposits opened in-branch, or 4.20 per cent for deposits opened online.

Mozo personal finance expert Kylie Moss told Yahoo Finance that banks had been repositioning their term deposit offerings in May in line with expectations that the RBA will cut rates.

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“So far, we've seen 44 banks cut term deposit rates and only 10 increasing rates. We expect to see savings rates also follow the downward slide if the RBA were to cut tomorrow,” she said.

All of the Big Four banks slashed interest rates on their key savings accounts following the RBA’s 25 basis point rate cut in February.

Since then, some banks, including ANZ, have made further interest rate cuts to their savings accounts.

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"The good news is that there remains a lot of competition in the savings market, so if your bank does drop rates, be prepared to switch,” Moss said.

ING currently offers the market-leading savings rate at 5.40 per cent.

Prior to the cash rate cut in February, the rate was 5.5 per cent, with the bank dropping it by only 10 basis points, cutting the base rate significantly and boosting the bonus rate.

Savers who don’t meet the monthly bonus interest criteria will see their rate drop to 0.05 per cent.

Moss said it was important to pay close attention to the bonus interest criteria, with ACCC data finding 71 per cent of savers did not get the bonus rate applied because they don’t meet the conditions of the deal.

“This can really help to boost your savings, but you need to make sure that you consistently hit the criteria, otherwise opt for an account with a high ongoing base interest rate,” she said.

RBA tipped to cut rates tomorrow

All of the Big Four banks are expecting the RBA will cut interest rates tomorrow.