- Bessie Hassan
- Head of PR & Money Expert
- finder.com.au
- +61 402 567 568
- Bessie.Hassan@finder.com.au
Media Release
Savings could take $1.3 billion dive following rate cut
- Two banks have already passed on cuts to savers
- $526 billion kept in savings accounts across the country
- Finder’s top high interest savings accounts
10 June, 2019, Sydney, Australia – New research from Finder, Australia's most visited comparison site, reveals that Australian households could lose over a billion dollars in interest on their savings, following the Reserve Bank's cash rate cut on Tuesday.
While mortgage holders are rejoicing at the passing of the first rate cut since August 2016 and a record low cash rate of 1.25%, it's a different story for those relying on savings, particularly retirees.
Australians currently have $526 billion kept in savings accounts across the country, according to Finder research.
If banks pass on the RBA's 25 basis point interest rate cut in full, Aussies will lose a staggering $1.3 billion in interest over the course of a year.
This week we've seen AMP cut its base rate on their savings account by 25 basis points. Suncorp reduced its savings account rates by up to 30 basis points while ING passed on a cut of 20-25 basis points to term deposits.
Graham Cooke, insights manager at Finder, says that it's crucial that savers start looking for the best deal on the market.
"With another cut or two on the horizon for 2019, it'll be interesting to see how many will hold this time around and pass it on next time.
"However, our research shows that the average online savings account rate has followed the cash rate when it has moved 99% of the time since 1990, so cuts of some degree are almost guaranteed.
"If more lenders pass on the cut, it's likely to hurt Aussies that have worked hard to put away a large amount of savings, such as those saving for their first home, or retirees relying on their savings as a form of income," says Cooke.
"It's crucial to check how your savings account stacks up. Even a marginally better rate could pocket you more money in the long run."
Changes to savings and deposit accounts
| Bank | Product | Change | New rate | Effective date |
|---|---|---|---|---|
| AMP | AMP Saver Account | 25 basis points | 1.85% | 10 June |
| Suncorp | Suncorp Growth Saver Account | 30 basis points (to bonus rate) | 2.30% | 10 June |
| Suncorp | Suncorp Everyday Options Sub Accounts | 25 basis points | 1.15% | 10 June |
| Suncorp | Suncorp eOptions Savings Account | 30 basis points | 1.10% | 10 June |
| ING | ING Personal Term Deposits (90 day) | 25 basis points | 1.50% | 7 June |
| ING | ING Personal Term Deposits (1 Year) | 20 basis points | 2.25% | 7 June |
| ING | ING Personal Term Deposits (2 Years) | 20 basis points | 2.25% | 7 June |
To stay one step ahead of the game, it's important to compare different savings accounts from a range of reputable banks, building societies and credit unions, Cooke says.
"You could even consider hopping between savings accounts and taking advantage of their introductory rates.
"However, the best value in the market can be found in accounts with ongoing bonus interest rates. These tend to be savings products from online only banks that unlock a constant high rate if you also do your day-to-day banking with them.
"If you're opening up a new bonus savings account, make sure you check the account conditions for earning the bonus rate. Also make sure you check what the interest rate will revert to once the introductory honeymoon period ends."
Finder’s top high interest savings accounts
| Product | Interest rate and conditions |
|---|---|
| HSBC Serious Saver | - Maximum Rate: 3.10% p.a. for 4 months - Standard Variable Rate: 1.20% p.a. - Maximum Rate only applicable when you make no withdraws - Monthly fees: $0.00 |
| Citibank Online Saver | - Maximum Rate: 2.90% p.a. for 4 months - Standard Variable Rate: 1.60% p.a. - Monthly fees: $0.00 |
| UBank Saver | - Maximum Rate: 2.87% p.a. - Standard Variable Rate: 1.81% p.a. - Monthly deposit required: $200.00 - Monthly fees: $0.00 |
*As of 07/06/2019, subject to rate changes
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For further information
- Bessie Hassan
- Head of PR & Money Expert
- finder.com.au
- +61 402 567 568
- Bessie.Hassan@finder.com.au
Disclaimer
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
About Finder
Every month 2.6 million unique visitors turn to Finder to save money and time, and to make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.
Our free service is 100% independently-owned by three Australians: Fred Schebesta, Frank Restuccia and Jeremy Cabral. Since launching in 2006, Finder has helped Aussies find what they need from 1,800+ brands across 100+ categories.
We continue to expand and launch around the globe, and now have offices in Australia, the United States, the United Kingdom, Canada, Poland and the Philippines. For further information visit www.finder.com.au.
12.6 million average unique monthly audience (June- September 2019), Nielsen Digital Panel