With growing savings among Australians, banks accelerate the reduction of deposit interest rates surpassing the official cash rate set by the Reserve Bank of Australia | Banking

Major banks are lowering interest rates for savers despite the Reserve Bank maintaining the official cash rate, as households increase their deposits. ANZ reduced the full rate on its progress saver account from 3.5% to 3.4% and Westpac cut its reward saver rate by 0.05% in June, making a total rate cut of 0.65% since February. Other banks, such as Ubank and Bendigo Bank, have also reduced their savings rates. Traditional savings yields are falling, with only four banks offering interest rates of 5% or more. Lenders choose to take advantage of Australians’ high demand for savings accounts. Interest rates are likely to fall further if the Reserve Bank cuts in August, benefiting mortgage holders but reducing returns for savers.

Source: https://www.theguardian.com/australia-news/2025/jul/20/as-more-australians-save-banks-are-cutting-interest-rates-for-deposits-faster-than-the-rbas-offical-cash-rate