Banks’ household deposit balances grew by 2.3 per cent in July (27.6 per cent annualised), according to the latest APRA data, and this strong flow is giving ADIs scope to keep cutting rates.
CBA led the charge last month, cutting the NetBank Saver rate by 7 basis points and its GoalSaver and YouthSaver rates by 5 bps.
From August 31, NetBank Saver has a five-month introductory rate of 33 bps, reverting to an ongoing rate of 5 bps. GoalSaver has a bonus rate of 30 bps and a base rate of 5 bps. YouthSaver has bonus rate of 55 bps and a base rate of 5 bps.
Canstar says CBA has cut the NetBank Saver rate by a total of 132 bps since the start of the pandemic – more than double the reduction in the cash rate over that period.
Mozo reports that in other savings rate changes last month, Bankwest withdrew its TeleNet account, which had an intro rate of 40 bps.
Defence Bank cut 10 bps off the ongoing bonus rate on its Max eSaver account, which is now 61 bps.
Heritage Bank cut the ongoing bonus rate on its Target Bonus account by 5 bps to 46 bps.
Qudos Bank cut the ongoing bonus rate on its Bonus Saver account by 10 bps to 70 bps.
The best at-call offers in the market are an ongoing bonus rate of 1.35 per cent on ING Savings Maximiser, a four-month intro rate of 1.35 per cent on Rabobank’s High Interest Saver Account (reverting to 25 bps) and an unconditional base rate of 95 bps on the Macquarie Savings Account.
The best term deposit rates are all offered by Judo Bank: 87 bps for nine months, 95 bps for one year, 1.2 per cent for 2 two years, 1.15 per cent for three years, 1.4 per cent for four years and 1.6 per cent for five years.
Among the big four banks there is no TD rate above 30 bps for terms up to three years.