Sunday 8 May 2022 11:08 PM Cash payments for Australians with money in the bank trends now
Commonwealth Bank has so far failed to pass on the latest official interest rate rise to everyday savers, but Westpac, NAB and ANZ have.
The Commonwealth Bank was the first major lender on Tuesday to announce it had passed on in full the Reserve Bank of Australia's 0.25 percentage point rate increase to its variable rate home loan borrowers.
Within a year, typical borrowers with a $600,000 mortgage could be paying more than $700 extra a month on their mortgage repayments with two big banks now expecting seven more interest rate increases by May 2023.
But when it came to savings accounts, CBA was the only major bank yet to act as of Thursday afternoon.
The other big banks - Westpac, NAB and ANZ - have all increased their bonus savings rates by a quarter of a percentage point.
RateCity research director Sally Tindall said CBA customers had every right to feel upset.
'This is a hugely disappointing decision from CBA,' she said.
Australia's biggest bank has so far failed to pass on the latest official interest rate rise on to its everyday savers. When it came to savings accounts, the Commonwealth Bank was the only bank yet to act as of Thursday afternoon (pictured is a Sydney branch)
'Savings customers with Australia’s biggest bank have a right to feel ripped off.
'The bank has offered up nothing for kids, and nothing for regular savers.'
National Australia Bank chief executive Ross McEwan declined to comment on CBA but noted savers had missed out for more than a decade.
'For the last 11 years savers have been hurt with interest rates coming down, so we thought it was very important that we look after them,' he told reporters on Thursday.
From May 13, NAB's Reward Saver rate rises to a maximum rate of 0.5 per cent.
Westpac's Life product will have a 0.5 per cent savings rate from May 17.
ANZ's Progress Saver account will have a 0.4 per cent rate by May 13.
But the Commonwealth Bank's GoalSaver stays at 0.25 per cent - the lowest of the major banks.
CBA is instead offering an 18-month term deposit rate of 2.25 per cent for savers with balances of between $5,000 to $2million, from May 13.
This is still lower than the one-year term deposit rates offered by smaller players.
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