ME and Macquarie cut savings account rates
Photo by Ali Kazal on Unsplash
Two other big banks cut interest rates on savings accounts this week: ME Bank and Macquarie Bank.
ME Bank, which passed on the full RBA rate cut to variable home loan customers, said on Wednesday it would cut the maximum rate of his Online Savings Account of 15 basis points, bringing the maximum rate from 1.35% pa to 1.20% pa
The conditions for earning the bonus rate (1.15% pa) are simply to make four tap and go purchases per month from a linked ME transaction account.
Macquarie Bank, which did not cut variable mortgage rates in November, made the same cut on its savings account, dropping the total rate on its savings account from 1.35% pa to 1, 20% pa, effective today.
For Macquarie balances greater than $ 250,000, this total interest rate drops to just 0.95% pa, while a temporary introductory rate of 1.35% pa applies for the first four months.
Neobank Volt (still in beta) also reduced the maximum rate on its savings account from 1.45% per year to just 1.00% per year
Need a place to store money and earn interest? The table below shows savings accounts with some of the highest non-introductory and introductory interest rates on the market.
Boost Saver – Savings Account
variable rate pa
BOOST YOUR SAVINGS up to 1.5% during the first 3 months
- Red Hot Intro Rate up to 1.5% for the first 3 months
- Enjoy up to 1.2% thereafter
- Bundled with Virgin Money Go transaction account
These are just the latest banks to pass the full 15 basis point RBA rate cut through to savings accounts.
Earlier this week, we announced that NAB-owned UBank, which promises to pass the full cash rate cut on variable home loans later this month, announced that it would lower its rate on variable home loans. USave interest of 15 basis points in total.
However, ING did not pass on the 15 basis point cut to variable mortgage loans, while reducing savings account rates by the same margin.
Before the RBA’s rate cut decision, each of the four big banks had also reduced interest rate on savings accounts, just like popular neobanks like Xinja, Up and 86,400.
As a result, the market’s highest current savings account rate currently does not exceed 1.50% per annum – special accounts excluded.
Some accounts like the BOQ Fast Track Starter account for 14-24 year olds or the Westpac Life account for savers aged 18-29 offer special interest rates of up to 3.00% per annum, but these are rare and not available. for everyone.
With research from the Raiz microinvestment app this week showing that up to 85% of Australians don’t even know what the interest rate is on their bank account, savers should remain vigilant in case their bank chooses. to reduce rates even further.
“To put it simply, inflation can be low, but interest rates are in many cases even lower,” Founder and CEO of Raiz, George Lucas noted.
âThis has led commentators to refer to savings accounts as ‘parking accounts’, where savers can fall back because they are not compensated for the decrease in the purchasing power of their savings, due to inflation. “
Term deposit rates have not been any better in recent months and the downtrend continued after the RBA rate cut.
Already in November, a plethora of banks cut time deposit rates by at least 15 basis points:
Other notable banks cut just under 15 basis points, such as ME, AMP, Judo Bank and Bendigo Bank, among others.
The average rate on term deposits, all conditions combined, has now fallen below 0.70% per annum, a far cry from the rates they were at the start of 2019.
Savings.com.au’s analysis of data from the Big Four banks last week found that about half of deposits (including term deposits) with big banks earn less than 0.25% per annum in interest. .
Over a fifth (22%) of NAB deposits earn less than 0.01% per year