Savers were enjoying some of the highest rates seen in years - even in over a decade - with the RBA keeping the cash rate on hold at 4.35% for 14 months.
Now, expect these rates to come off the boil slightly.
It's not all bad news, however, because the RBA cutting cycle might be shallower than anticipated.
Many economists only forecast one to three more cuts, and they will happen gradually over the course over the next year or so.
However RBA governor Michele Bullock said three more felt "far too confident", and that upside risks to inflation remain.
Indeed, the timeline for inflation to return to basically 2.5% has been pushed out yet another six months.
In its Statement of Monetary Policy forecasts, the central bank sees underlying inflation at 2.7% until at least mid-2027.
By then that means around five-and-a-half years of Australians putting up with underlying inflation above the midpoint of the target.
Nevertheless, the longer the RBA misses its inflation mantra means rates higher for longer, which means better news for savers.
In case you didn't receive email correspondence, here are the changes observed for prominent banks and savings accounts in the wake of the February 2025 decision.
Most of the cuts apply to the standard variable rate, making it all the more important to meet the bonus interest criteria - an advent that irks the ACCC, given it found upwards of 70% of savers don't meet their monthly bonus criteria.
Page last updated 10.30am AEDT, 20 February 2025.
Commonwealth Bank Savings Account Rate Cuts
CBA will decrease the interest rates for the following savings products effective 28 February 2025:
- NetBank Saver: Intro rate will decrease by 0.20% to 4.90% p.a. The fixed bonus margin remains unchanged while the standard variable rate is the one getting the haircut.
- GoalSaver: Rate will decrease by 0.25% to a total of 4.65% p.a. This comprises of a 0.05% cut to the standard rate, and a 0.20% cut to the bonus rate.
Westpac Savings Account Rate Cuts
Westpac has announced changes to our deposit account interest rates, effective 28 February 2025:
- Life: Total rate will decrease by 0.25% to 4.75% p.a. The cut applies to the standard variable rate, with the bonus rate unchanged.
- eSaver: Total rate will decrease by 0.25% to 4.75% p.a. A 0.15% cut applies to the 5-month intro fixed rate, while 0.10% applies to the standard variable rate. The online sign-up bonus is unchanged.
St George, BankSA, and Bank of Melbourne
Westpac subsidiaries' savings accounts are also getting a haircut, with the same rates applying to all, effective 28 February.
- Incentive Saver: Total rate is decreased by 0.25% to 5.00% p.a. This applies to the bonus rate on balances up to $250,000 (including the 0.10% online sign up bonus).
- Maxi Saver: Total rate decreased by 0.25% to 4.90% p.a. This comprises of a 0.10% cut to the standard variable rate, and 0.15% to the 3-month introductory fixed rate.
NAB Savings Account Rate Cuts - pending
ANZ Savings Account Rate Cuts - pending
ANZ Plus Savings Account Rate Cut - pending
AMP Savings Account Rate Cuts
AMP announced it will cut its savings account rate by 0.25%, effective 21 February.
- Saver: Total rate will be 4.75% p.a. The cut affects the standard variable rate, now down to 0.75%. The bonus rate remains 4.20% p.a. provided bonus criteria is met.
A couple of other savings accounts are getting a 25 basis point cut, too, including the Super Edge and 6-Month Notice Saver.
The outlier is the 31-day notice account, getting a 35 basis point cut.
Bank of Queensland (BOQ) Savings Account Rate Cuts - pending
Bendigo Bank Savings Account Rate Cuts - pending
Great Southern Bank Savings Account Rate Cuts - pending
ING Savings Account Rate Cuts - pending
Macquarie Bank Savings Account Rate Cuts - under review
UBank Savings Account Rate Cuts - pending
Up Bank Savings Account Rate Cuts - pending
Photo by Michelle Henderson on Unsplash
