Savings rates are horrible…and getting worse

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;

Bank	Product Name	Base Rate	Intro Rate	Max Rate	Intro Term (months)
CBA	Net Bank Saver	0.10%	1.55%	1.65%	4
Westpac	eSaver	0.10%	1.56%	1.66%	5
NAB	iSaver	0.11%	1.44%	1.55%	4
ANZ	Online Saver	0.10%	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.

Bank	Product	Base Rate	Bonus Rate	Max Rate	Conditions
CBA	Goal Saver	0.01%	0.89%	0.90%	Mthly deposit of $200, no withdraw
Westpac	Life	0.45%	1.20%	1.65%	Mthly deposit, account balance must have increased
NAB	Reward Saver	0.11%	1.39%	1.50%	Mthly deposit, no withdraw
ANZ	Progress Saver	0.01%	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

Bank	Max rate	Conditions
Xinja	2.25%	Must have linked bank account
Up	2.25%	4 card purchases from everyday acct
86 400	2.25%	Deposit of $1000 in everyday acct
BOQ	2.15%	Deposit of $1000 in everyday acct
UBank	2.10%	Deposit of $250 in transaction acct