Savings rates are horrible…and getting worse

low-savings

NAB has cut the introduction rate on its iSaver account by 0.15 per cent and on its Reward Saver account by 0.11 per cent.

It doesn’t sound much but when savings account returns are so low to start with it is quite a hit… particularly when there has been no change to official interest rates. 

According to RateCity, the returns from the Big Four Banks standard savings accounts are;  

BankProduct NameBase RateIntro RateMax RateIntro Term (months)
CBANet Bank Saver0.10%1.55%1.65%4
WestpaceSaver0.10%1.56%1.66%5
NABiSaver0.11%1.44%1.55%4
ANZOnline Saver0.10%1.50%1.60%3

Note: Max rate is the base and bonus added together

These accounts have no ongoing terms and conditions. They typically include an introductory period which offers bonus interest for several months, before dropping to a low ongoing rate.

Then there are the conditional savings accounts which require you to meet certain terms and conditions, such as one deposit a month and no withdrawals, in order to qualify for the bonus interest that month.

BankProductBase RateBonus RateMax RateConditions
CBAGoal Saver0.01%0.89%0.90%Mthly deposit of $200, no withdraw
WestpacLife0.45%1.20%1.65%Mthly deposit, account balance must have increased
NABReward Saver0.11%1.39%1.50%Mthly deposit, no withdraw
ANZProgress Saver0.01%1.59%1.60%Min mthly deposit of $10, no withdraw

Note: Note: Max rate is base and bonus added together

Rates based on balances less than $50,000. CBA offers higher rates for larger deposits.

Highest ongoing savings rates on RateCity.com.au

 

BankMax rateConditions
Xinja2.25%Must have linked bank account
Up2.25%4 card purchases from everyday acct
86 4002.25%Deposit of $1000 in everyday acct
BOQ2.15%Deposit of $1000 in everyday acct
UBank2.10%Deposit of $250 in transaction acct

Note: excludes kids savers and introductory rates.

ALSO READ: A great 12 months for superannuation: How did yours perform

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