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Savings rates get a post-RBA haircut
Millions of savers have seen their interest rates drop today as three of Australia’s biggest banks reduce savings rates following last week’s cash rate cut.
30 May 2025
Millions of savers have seen their interest rates drop today as three of Australia’s biggest banks reduce savings rates following last week’s cash rate cut.
CBA, Westpac and ANZ each cut the interest rates on their key savings accounts today by up to 0.25 percentage points. NAB already cut its key savings rates last Friday, 23 May.
CBA did not pass on the full cut to its bonus savings rates for existing customers, dropping the maximum rate by 0.20 percentage points to 4.45%.
Westpac spared its existing online savers from the cut, however, with an ongoing rate of just 1%, these customers are already scraping the bottom of the savings tin. The bank’s bonus saver account for young adults also remained intact at 5.00%.
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| Big four banks – summary of changes to maximum ongoing rates |
|||
|---|---|---|---|
| Online saver | Bonus saver | Other accounts | |
| CBA | ⇓ 0.25% | ⇓ 0.20% | ⇓ Kids: 0.20% |
| Westpac | ✓ 0.00% | ⇓ 0.25% | ⇓ Kids: 0.25% ✓Young adults: 0.00% |
| NAB | ⇓ 0.25% | ⇓ 0.25% | N/A |
| ANZ | ⇓ 0.25% | ⇓ 0.25% | N/A |
Source: Canstar. Note: the above rate cuts are based on the maximum ongoing rate an existing customer can receive. Monthly terms and conditions, balance caps and age caps can apply.
From today, the highest ongoing savings rate from a big bank is 5.00%, from Westpac, however, customers need to be aged between 18 and 29 to qualify, in addition to meeting the monthly terms and conditions.
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| Big four banks’ ongoing savings rates | |||
|---|---|---|---|
| Bonus saver (monthly conditions apply) |
Online saver | Other | |
| CBA | 4.45% | 4.65% for 5 mths then 1.90% | Kids: 4.55% |
| Westpac | 4.50% | 4.50% for 5 mths then 1.00% | Kids: 4.50% Young adults (18-29): 5.00% |
| NAB | 4.40% | 4.65% for 4 mths then 1.50% | N/A |
| ANZ | Save: 4.50% Progress: 3.50% |
Flex: 4.50% ($5k max) Online Saver: 0.90% |
N/A |
Source: Canstar. Note: the above rates are the maximum ongoing rate an existing customer can receive. Monthly terms and conditions, balance caps and age caps can apply.
Market-leading rate to get a super-sized chop
Market leader, ING, has today announced it will drop the maximum rate on its Savings Maximiser from 5.40% to 5.00% from Monday.
While this move sees ING lop 0.40 percentage points off the total rate this time, the bank has cut by a total of 0.50 percentage points across the February and May RBA rate cuts.
Other market leaders still offer rates of 5% or more, however, some of these rates could fall prey to the RBA cash rate cut in the coming days.
- MOVE Bank Growth Saver (currently 5.25%)
- BOQ Future Saver ages 14 – 35 (currently 5.25%)
- BCU Boss Saver (currently 5.00%)
- P&N Savvy Saver (currently 5.00%)
- Westpac Life ages 18 – 29 (5.00% – already moved post RBA)
Cuts kick in as money in the bank hits a new record high
Today’s rate cuts are another blow for savers across the country, many of whom have been benefiting from a period of competitive savings rates and a growing savings balance.
APRA banking data released today for the month of April shows that money in the bank from households rose by more than $17 billion (1.1%) between March and April, hitting a record high of $1.61 trillion.
Note: this money is not all in savings accounts, but also term deposits, transaction accounts and home loan offsets accounts.
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| APRA monthly banking statistics: deposits from households | ||
|---|---|---|
| Amount | Monthly change | Year-on-year change |
| $1.61 trillion | +$17.1 billion +1.1% |
+$138.3 billion +9.4% |
Source: APRA Monthly Authorised Deposit-taking Institution Statistics, Apr 2025, released 31 May 2025.
Canstar’s data insights director, Sally Tindall says, “The high-rate honeymoon is quickly coming to an end with market leader, ING, set to cut its highest savings rate down to 5.00 per cent from Monday.”
“There are still banks offering ongoing savings rates starting with a ‘5’, however, after the May RBA cut filters through, we’ll probably be able to count them on one hand.
“While two of Australia’s biggest banks, CBA and Westpac, have spared some of their savings customers from the full RBA cuts, anyone with a big bank online savings account is now earning peanuts and should shop around, even if it’s within their own bank.
“Australians collectively have more money in the bank than ever before. Ironically, this concerted effort to save is putting pressure on the banks to cut rates where they can.
“It’s a grim outlook for savers staring down the barrel of two, potentially three further rate cuts this year, which could see the highest savings rates drop to the mid-fours.
“Australians who rely on their savings income may need to start tightening their belts, or consider shopping around for a better deal, while they last.”
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Cover image source: Natee Meepain/Shutterstock.com.au
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
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