Four online savers that pay more than the big four banks
Thought interest rates on savings accounts couldn't go lower? The big four banks have proved us all wrong.
Since the turn of the year, maximum interest rates have fallen by 10 basis points on Westpac's eSaver and by four basis points on Commonwealth Bank's NetBank Saver, according to RateCity.com.au research.
NAB has left the maximum rate unchanged on its iSaver account, although it has cut the base rate by 25 basis points.
ANZ is the only one of the big four not to change its savings rates in 2018. However, it did change its Online Saver account in December - the maximum rate remained on hold, although the base rate was slashed by 30 basis points.
- Base rate - steady at 0.80%
- Bonus rate - down from 1.71% to 1.61%
- Maximum rate - down from 2.51% to 2.41%
CBA NetBank Saver
- Base rate - down from 1.00% to 0.80%
- Bonus rate - up from 1.55% to 1.71%
- Maximum rate - down from 2.55% to 2.51%
- Base rate - down from 1.05% to 0.80%
- Bonus rate - up from 0.85% to 1.10%
- Maximum rate - steady at 1.90%
ANZ Online Saver
- Base rate - down from 0.80% to 0.50%
- Bonus rate - up from 1.75% to 2.05%
- Maximum rate - steady at 2.55%
No excuse to cut savings rates
Australians have every right to feel upset with the big four banks.
The Reserve Bank hasn't changed the cash rate since August 2016, so there's no justification for suddenly cutting interest rates on savings accounts, especially when they were already at such low levels.
The timing is interesting - the big banks might have thought they could sneak through these cuts while people were on holidays.
It's also curious how three of the big four actually increased their bonus rates, even though none of them increased their maximum rates. That means they can confuse people with talk of rate rises, when the truth is the opposite.
But you don't need to take this lying down.
There are literally dozens of other banks, credit unions and building societies out there that would love your business.
Many of them are paying higher rates of interest on savings accounts, so why not switch?
Four alternatives to the big four