CBA has announced it will increase its savings rates by up to 0.25 from Friday 27 March, in response to last Tuesday’s cash rate hike–the same day it increases its home loan rates.
The news came last week after big bank competitor Westpac announced hikes of up to 0.25 on select savings rates.
CBA’s GoalSaver account will rise by 0.25 to a maximum ongoing rate of 4.75%. However, the base rate on this account will not rise, which means savers who don’t meet the conditions in any given month will get just 0.25%.
CBA’s NetBank Saver introductory rate, which is available to new customers only for the first five months, will rise by 0.25 to 4.95%. The ongoing rate on this account is also lifting by 0.25, to a rate of 1.95%.
CBA savings rate changes – effective 27 March | ||
|---|---|---|
New rate | Change % pts | |
GoalSaver | 4.75% if conditions met, 0.25% if not | +0.25 to bonus rate 0.00 for base rate |
NetBank Saver | 4.95% for the first 5 months, then 1.95% | +0.25 to ongoing rate |
NetBank Saver (ages 18 - 35) | 5.10% for the first 5 months, then 1.95% | +0.25 to ongoing rate |
Youthsaver | 4.80% if conditions met, 2.00% if not | +0.15 to bonus rate +0.10 to base rate (total +0.25) |
Source: Canstar.com.au. Conditions apply for maximum rate on above accounts.
Canstar’s data insights director, Sally Tindall, says, “This rate announcement from Australia’s biggest bank is a win for engaged savers, with its popular GoalSaver account rising to a relatively competitive 4.75 per cent.”
“However, like we saw with Westpac, customers will need to meet the bank’s monthly terms and conditions if they want to reap the benefits of the March RBA hike because the base rate won’t be moving a muscle.
“This means GoalSaver customers who don’t manage to meet fine print will receive an interest rate of just 0.25 per cent interest for that month. That’s nothing short of pitiful.
“CBA is extending an olive branch to existing NetBank customers passing on the full 0.25 percentage point increase to the ongoing rate. However, at the new rate of just 1.95 per cent from Friday, these savers would do well to shop around.
“CBA has also made its foray into the young adult saver sector, with its new NetbankSaver for Australians aged 18 to 35. While the introductory rate will break the 5 per cent barrier, to a maximum of 5.10 per cent, for the first five months, it could well be a lesson in fine print that some younger savers will no doubt learn the hard way, with an ongoing rate of just 1.95 per cent after the honeymoon period comes to an end.
“Whether it's an introductory deal, a young adult account with an age limit, or a bonus saver account with monthly conditions, it’s critical customers are checking regularly to make sure they’re getting bang for buck.”
