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 5.30pm AEDT, 27 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
NAB made 25 basis point cuts on 21 February without public announcement, effective immediately. The details are:
- Reward Saver: Now 4.75% p.a. provided bonus criteria is met.
- iSaver: Now 4.75% p.a. as a fixed intro rate for four months.
Former Citi savings account
Citi customers who migrated over to NAB after the takeover enjoyed a special high-rate, unconditional savings account of 5.60% p.a.
It didn't display in any comparison tables due to its closed doors, but was without a doubt the highest ongoing savings account rate in the market - and with no conditions to boot.
Now that's been lowered by 25 basis points to 5.35% p.a.
ANZ Savings Account Rate Cuts
ANZ Plus Savings Account Rate Cut
Digital, app-only ANZ Plus has announced a total 25 basis point cut to its solitary savings account rate, now 4.75% p.a.
The change takes effect from 28 February.
This consists of a 10 basis point cut to the base rate (now 0.40% p.a.) plus a 15 basis point cut to the bonus rate (now 4.35% p.a.)
To achieve the bonus savers must grow their balance by $100 or more per month.
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
BOQ largely made the requisite 25 basis point rate cuts to key savings products, though its subsidiary Virgin Money made an outsized 35bps cut.
All were changed without announcement and without notice, effective 21 February. The details for BOQ are:
- Simple Saver: Now 4.55% p.a. (no deposit criteria)
- Smart Saver: Now 4.90% p.a. for over-36s provided bonus criteria is met
- Future Saver: Now 5.25% p.a. for under-35s provided bonus criteria is met
ME Bank Savings Account Rate Cuts
ME Bank cut its popular Home ME savings account rate by 25bps down to 5.00% p.a. provided bonus criteria is met.
ME Bank had already made a cut to this rate out-of-cycle late in 2024; at one stage it was one of the most competitive rates in the market at 5.50% p.a.
Virgin Money Savings Account Rate Cuts
Virgin Money made an outsized 35 basis point cut to its Lock Saver product, now down to 5.00% p.a. provided bonus criteria is met and savers lock their savings away for 31 days.
Without the rate lock feature, the rate is now 4.70% p.a. provided bonus criteria is met.
ING Savings Account Rate Cuts
At long last Savings Maximiser account holders know the fate of their interest rate, with ING having announced a 10 basis point cut on the 27th, effective on the 28th.
Those with a long memory will know the ING rate strategy team are wont to change rates on Thursdays - usually after Tuesday's monetary policy decision but this one was delayed a week more.
Still, only a 10 basis point cut down to a total of 5.40% p.a. is notable.
However arguably more notable is that all bar 5bps of that is in the bonus rate; ING used to have a 0.55% p.a. base rate, but now the loss in interest if savers do not meet the monthly criteria is more stark.
Elsewhere, the four-month intro rate Savings Accelerator was cut by 25 basis points to 5.15% p.a. on balances from $150,000 to $500,000.
After the four month period is up, the rate reverts to 4.45% p.a. on balances from $150,000 to $5 million.
Rabobank Savings Account Rate Cuts
Rabobank has cut its savings account interest rate by 15 basis points to 5.45% p.a.
This is a four-month introductory rate, after which the rate drops to 4.10% p.a.
Elsewhere, the Premium Saver is now 5.20% p.a. provided savers increase their balance by $200 each month; this also represents a 15 basis point cut.
Up Bank Savings Account Rate Cuts
Up Bank announced it would cut its savings account rate by 25 basis points, effective 1 March.
The rate is now 4.10% p.a. provided bonus criteria is met.
Great Southern Bank Savings Account Rate Cuts
GSB made 25 basis point cuts across all savings account products on 25 February.
- Goal Saver: Total rate now 5.10% p.a., with the 0.25% cut applied to the bonus rate on balances up to $50,000. The base rate of 0.50% remains unchanged.
- Home Saver: Total rate now 5.00% p.a. The 0.25% cut also applies to the bonus rate on balances up to $100,000, while the base rate stays at 0.50% p.a.
- Everyday Saver: Now 4.05% p.a.
- Youth eSaver: Now 5.25% p.a. on balances up to $5,000.
- Future Saver: Total rate now 4.60% p.a. on balances up to $500,000, following a 0.25% cut to the bonus rate. The base rate of 0.10% remains unchanged.
Macquarie Bank Savings Account Rate Cuts
Macquarie made moves on 27 February, effective immediately, consisting of a 25 basis point cut to its savings account and transaction account.
The four-month fixed intro rate is now 5.10% p.a. on balances up to $250,000 and after that period is up, 4.75% p.a. applies on balances up to $1 million.
What's arguably more noteworthy however is that Macquarie was one of the only banks to offer any sort of interest rate on its transaction account.
Now a 2.50% p.a. rate applies on all balances, even ones above $1 million.
Importantly, on both accounts, no deposit criteria applies to attain those interest rates.
UBank Savings Account Rate Cuts
On 25 February NAB-owned digital outfit ubank announced a 25 basis point cut, effective 1 March.
The 'Save' rate will be cut to 5.25% p.a. on the first $100,000 and to 4.75% p.a. for balances between $100,000 to $250,000.
This is provided bonus criteria is met (deposit $500 a month).
Photo by Michelle Henderson on Unsplash
