Deposit takers are not waiting for the Reserve Bank’s monetary policy decision before reviewing deposit rates. On Friday, Commonwealth Bank cut its savings rates by 10 basis points, the third time the bank has cut savings rates in six weeks.
Earlier in the week, NAB cut savings rates by 10 bps – the second round of cuts in a month.
In its latest Banking Roundup, comparison site Mozo said there is clear evidence that the big flow of funds into savings accounts has taken the pressure off banks to compete for deposits.
Banks have reported growth in customer deposits of 10 per cent or more this year.
Mozo described October as “another month of deep cuts”. Deposit takers that cut at-call rates included all four big banks, UBank, ME Bank and neobanks 86 400 and volt.
Mozo reported that 57 ADIs cut term deposit rates last month, again including all the big banks.
In the at-call market, the highest unconditional base rate is Macquarie Bank’s offer of 1.35 per cent. The highest ongoing bonus rate us Up’s offer of 1.6 per cent for customers who make at least five transactions a month, and the highest introductory rate is Rabobank’s offer of 2 per cent for four months (reverting to a base rate of 55 bps).
In the TD market BankVic is offering the highest rate under 12 months – 1.21 per cent for nine months. Judo Bank has the highest rates for terms between 12 months and five years, with its best rate 1.55 per cent for three years.
Among the big banks, ANZ is offering a three-month intro rate of 65 bps and an ongoing bonus rate of 70 bps; CBA is offering a five-month intro rate of 75 bps and an ongoing bonus rate of 50 bps; NAB is offering a four-month intro rate of 75 bs and an ongoing bonus rate of 70 bps; and Westpac is offering a three-month intro rate of 75 bps and an ongoing bonus rate of 75 bps.
Westpac also has a 3 per cent bonus rate for the under 30s.