Bloodbath in the at-call market

More than one-third of deposit-takers offering high interest at-call accounts cut their rates last month, accelerating a trend in progress since late 2013.

According to comparison website Mozo, introductory rates or ongoing bonus rates on 26 of 75 products on its database were cut in October, with the average reduction 13 basis points. The average bonus or intro rate has dropped to 3.47 per cent.

Among the big banks, ANZ cut the introductory rate on its Online Saver account from 3.8 per cent to 3.7 per cent. In September it cut the introductory rate period from four to three months.

ANZ also cut the ongoing bonus rate on its Progress Saver account by 10 bps to 3.61 per cent.

Commonwealth Bank reduced the ongoing bonus rate on its GoalSaver account by 16 bps to 3.65 per cent.

National Australia Bank cut the ongoing bonus rate on its Reward Saver account by ten basis points to 3.73 per cent.

NAB's online bank, UBank, cut the ongoing bonus rate on its USaver Ultra account from 4.17 per cent to 4.02 per cent.

Despite the cut, UBank still offers the highest at-call rate in the market, followed by Rams at 4.01 per cent. ING Direct Savings Maximiser offers four per cent (if the account holder also deposits a minimum amount into an Orange Everyday transaction account each month). The RaboDirect 90-day Notice Saver account rate is also four per cent.

Bankwest cut 25 bps off its Smart eSaver ongoing bonus rate, which is now 3.85 per cent.

Bank of Queensland cut the introductory rate on its WebSavings account by 25 bps to 3.75 per cent and also took ten bps off the ongoing bonus rate on its Bonus Interest Savings account, which is now 3.3 per cent.

St George Bank cut the introductory rate on its Maxi Saver account by ten bps to 3.85 per cent and also took 20 bps off the ongoing bonus rate on its Incentive Saver account, which is now 3.6 per cent.

Some of the mutuals got into the act, including CUA, Newcastle Permanent, Maitland Mutual, Victoria Teachers Mutual bank and People's Choice Credit Union.