How much have CommBank and Westpac reduced depositors' interest rates by?

Within a few days of each other, two of Australia’s largest banks have taken the knife to interest rates on term deposits and savings accounts. It could be time for savers to think outside the box as to where to put their money in order to get a reasonable return, according to one expert.
CBA and Westpac savings cuts 27.07.2020
Is it time to think outside the box as to where to stash your savings? Image source: Fee, Shutterstock.

Commonwealth Bank (CBA) today announced cuts of 0.05 percentage points to its GoalSaver account and cuts of up to 0.20 percentage points to a range of term deposit rates.

The move comes after Westpac and its subsidiaries – St. George, Bank of Melbourne and BankSA – made similar cuts on Friday. Several term deposit rates from all four brands were reduced by up to 0.15 percentage points, while the subsidiaries’ savings account rates also fell by up to 0.10 percentage points.

CBA’s GoalSaver account now earns a maximum of 0.95% interest for balances above $50,000 if customers meet the bonus conditions by depositing at least $200 and making no withdrawals during the month.

↓ Keep reading to find the full breakdown of the GoalSaver’s new rates

The bank’s highest term deposit rate remains at 1% for a five-year deposit, with the next highest rate of 0.90% available on terms of 10 months, two years, three years or four years. A one or two-month term deposit earns just 0.10% after today’s cuts.

Canstar finance expert Steve Mickenbecker said savings rates had been falling for the better part of two years now, and it could be time for customers to get creative.

“The highest rate from the majority of the major banks sits at 0.85% to 1.05%,” Mr Mickenbecker said.

“Savers could do well to think outside the box when it comes to getting a reasonable return, with rates of up to 2.25% available.”

↓ Scroll down to discover where you can find the top savings rates today

He said Westpac had bucked the trend of low rates among the majors by introducing a savings rate of 3% for 18- to 29-year-olds with balances below $30,000. On the other hand, CBA’s cut to the GoalSaver account follows reductions it made earlier this month to its Netbank saver and Youthsaver accounts as well.

What are the top savings account interest rates?

The major banks don’t make the list when it comes to who offers the top online savings account rates on Canstar’s database at the time of writing:

  1. 2.25% – Rabobank’s High Interest Savings Account (0.80% base rate + 1.45% promotional rate for four months)
  2. 2.20% – Heritage Bank’s Online Saver (0.80% base rate + 1.40% promotional rate for four months)
  3. 2.05% – Citi’s Online Saver (0.35% base rate + 1.70% promotional rate for four months)
  4. 2% – Macquarie Bank’s Savings Account (1.35% base rate + 0.65% promotional rate for four months)
  5. 1.65% – Volt’s Save Account*

Source: – 27/07/2020. Based on flexible savings accounts on Canstar’s database available for a deposit amount of $10,000. Flexible savings accounts include those with no conditional bonus interest rate. Top 5 selected and products listed in descending order by Total Rate, followed by Base Rate. Total Rate includes base rate plus any applicable promotional bonus. Conditions may apply to promotional rates, contact the relevant company for full terms and conditions. *Volt Save Account currently in beta, new customers must join a waiting list to gain access.

What are CBA’s new Goal Saver account interest rates?

CBA’s new savings rates on its Goal Saver account, effective today, are:

  • Base rate: remains at 0.10%
  • Bonus rate for balances less than $50,000: remains at 0.40%
  • Bonus rate for balances over $50,000: reduced by 0.05 percentage points to 0.85%
  • Headline rate for balances over $50,000: reduced by 0.05 percentage points to 0.95%

What are CBA’s new term deposit interest rates?

CBA’s new term deposit rates, effective today, are as follows:

CBA Term Deposit Changes – 27 July 2020
Old Rate New Rate Change
1 Month 0.20% 0.10% -0.10%
2 Month 0.30% 0.10% -0.20%
3 Month 0.60% 0.50% -0.10%
4 Month 0.60% 0.55% -0.05%
5 Month 0.65% 0.55% -0.10%
6 Month 0.65% 0.60% -0.05%
7 Month 0.70% 0.65% -0.05%
8 Month 0.70% 0.65% -0.05%
9 Month 0.75% 0.70% -0.05%
10 Month 0.95% 0.90% -0.05%
11 Month 0.80% 0.75% -0.05%
1 Year 0.85% 0.80% -0.05%
2 Years 0.90% 0.90%
3 Years 1.00% 0.90% -0.10%
4 Years 1.00% 0.90% -0.10%
5 Years 1.00% 1.00%
Source: Commonwealth Bank – 27/07/2020. Based on a deposit of $50,000 to $1,999,999. Interest paid at end of term for terms below 12 months. Interest paid annually for terms over 12 months.

This article was reviewed by our Sub-editor Tom Letts before it was published as part of our fact-checking process.

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