CBA cuts saver's rates again, joined by NAB

CBA has cut the introductory rate on its NetBank Saver account by -0.05% while slashing the bonus rate on its GoalSaver account by -0.05% for balances of $50,000 or more.

The bank has also cut the bonus rate on its Youthsaver account by -0.10%.

This is the second time in just over six weeks that CBA has cut the introductory rate on its NetBank Saver account and the total rate available on its Youthsaver account as well as the bonus rate on its GoalSaver account.

NAB has also revealed cuts of between -0.05% and -0.15% for its 1, 2 and 3-month term deposits.

New analysis shows 50% of savings accounts and 80% of term deposits on Canstar’s database have a total rate of less than 1%.

Canstar’s Editor-at-Large and money expert, Effie Zahos commented on the rate cuts, “A cut to deposit rates right now will be felt pretty hard by anyone financially impacted by the pandemic, people saving for their first car or first home, and many retirees.”

“Depending on the balance of your savings, retirees would see the Government deeming you to earn 2.25% on the portion of your savings over $53,000, despite the highest deposit rate being 2.20%. Even smaller balances are deemed to earn over 0.25%. This goes to show retirees with money in the bank have to be chasing the top returns on savings accounts."

“Banks are seeing their margins squeezed, some banks aren’t paying dividends and others are trying to offer higher rates in a low rate environment. It’s forcing savers to move their money about."

“Where one lender is reducing rates, there will be another holding on with a better deal.”