New analysis shows more than 40 banks have cut their savings rates since the Reserve Bank trimmed the official cash rate on November 3.
And more cuts are potentially on the way.
All the Big Four banks have taken a knife to savings and term deposit accounts in response to the RBA’s move, despite none of them passing on the full RBA rate cut to variable mortgage customers.
Banks have trimmed savings rates so much this year that the average ongoing rate on RateCity.com.au, which conducted the analysis, is now just 0.45 per cent.
That means someone with a balance of $10,000 would only earn $45 interest over a 12-month period – or just $3.75 a month.
RateCity.com.au research director Sally Tindall said past experience suggests the banks will keep on cutting rates and customers therefore have to shop around for a better deal.
“It’s frustrating to see savings rates tumble despite no move to variable home loan rates. People looking for a competitive rate on their savings account or their home loan have to get up and do something about it,” she said.
“Do nothing and you’ll be duped.
“This isn’t necessarily the end of it. The big banks could keep on cutting their rates over the coming months.
“That’s what they did last time the RBA cut the cash rate, although it’s becoming hard to see where else there is left to cut.”