19 May – 23 May 2025

Summary:

While homeowners celebrate another cut to the Reserve Bank of Australia cash rate in 2025, savers may not be quite as enthusiastic. Let’s look at the movers this week.

Westpac. First-mover Westpac made the unusual move to cut its savings accounts rates before announcing changes to its home lending variable rates. Effective Friday 30 May, the standard variable bonus rate on Westpac Life accounts will be cut 25 basis points to 4.10% p.a. (from 4.35% p.a.). That takes the total variable interest rate available to 4.50% p.a. (down from 4.75% p.a.). The Westpac eSaver account will see its five-month introductory fixed rate drop to 3.15% p.a. (from 3.40% p.a.).

Bank of Melbourne. The bonus variable rate for total account balances below $250,000 will be cut to 4.25% p.a. (from 4.50% p.a.) with the total variable rate with online bonus (0.10% p.a.) for new customers dropping to 4.75% p.a. (down from 5.00% p.a.). For customers with account balances $250,000 or more, the bonus variable rate falls to 4.10% p.a. (down from 4.35% p.a.) with the total variable rate with online bonus (0.10% p.a.) dropping to 4.60% p.a. (from 4.85% p.a.). The three-month introductory fixed rate drops to 3.30% p.a. (down from 3.55% p.a.).The three month online bonus rate remains unchanged at 0.35% p.a.

BankSA. The bonus variable rate for total account balances below $250,000 will be cut to 4.25% p.a. (from 4.50% p.a.) with the total variable rate with online bonus (0.10% p.a.) for new customers dropping to 4.75% p.a. (down from 5.00% p.a.). For customers with account balances $250,000 or more, the bonus variable rate falls to 4.10% p.a. (down from 4.35% p.a.) with the total variable rate with online bonus (0.10% p.a.) dropping to 4.60% p.a. (from 4.85% p.a.). The three-month introductory fixed rate drops to 3.30% p.a. (down from 3.55% p.a.). The total variable rate with online bonus for new Maxi Saver customers will drop to 4.65% p.a. (down from 4.90% p.a.).

St George Bank. For Incentive Saver accounts with total account balances below $250,000, the bonus variable rate will drop to 4.25% p.a. (down from 4.50% p.a.) while the total variable rate with online (0.10% p.a. bonus) will fall to 4.75% p.a. (from 5.00% p.a.). For account balances of $250,000 or more, the bonus variable rate falls to 4.10% p.a. (down from 4.35% p.a.) while the total variable rate with online (0.10% bonus) for new customers will drop to 4.60% p.a. (from 4.85% p.a.). 

As noted last week, the big banks jumped the gun on term deposit rate cuts ahead of RBA move. NAB and Westpac led the wave of term deposit rate drops a few days ahead of what was the widely expected RBA cash rate cut.

Exhibit 1- Highest Term Deposit Rate by Term

 

Term deposit rates by Institution

Institution	1 month	2 month	3 month	4 month	5 month	6 month	9 month	1 Year	2 Year	3 Year	4 Year	5 Year
ANZ	1.25	1.45	2.9	3.05	3.15	3.2	3.4	3.9	3.65	3.1	3.1	3.1
Commonwealth Bank	1.25	1.5	2.9	3.1	3.15	3.2	3.4	3.9	3.75	3.5	3.5	3.5
NAB	1.25	1.45	2.9	3.05	3.15	3.2	3.4	3.9	3.8	2.9	2.9	2.9
Westpac	1.25	1.45	2.75↓	2.90↓	3.00↓	3.05↓	3.30↓	3.75↓	3.50↓	3.00↓	3.00↓	3.00↓
Military Bank			3.4	4.2	4.3	4.55	4.2	4.25	3.8	3.8
AMP Bank	0.1	0.2	4.35	4.4	4.5	4.5	4.2	4.05	3.7	3	3	3
Arab Bank Australia	1.25	1.25	4.05	3.9	3.9	4.6	4.1	3.9	3.6	3.5	3.5	3.4
Bank of Melbourne	1.25	1.45	2.75↓	2.90↓	3.00↓	3.05↓	3.30↓	3.75↓	2.80↓	2.90↓	2.90↓	2.90↓
Bank Australia			4.35↓			4.35	4	4	3.8	3.8
BankSA	1.25	1.45	2.75↓	2.90↓	3.00↓	3.05↓	3.30↓	3.75↓	2.80↓	2.90↓	2.90↓	2.90↓
Bankwest	2	2	3.75	3	4.2	4	3.8	3.8	3.6	3.6	3.75	3.75
Bank of Sydney	1.25	1.5	4	3.5	3.5	4.4	4.1	4.1
BankVic			3.6	4	4.5	4.3	3.7	4.2	4	4	4	4
Beyond Bank			4.3			4.15	3.9	3.85	3.6	3.5	3.5	3.5
Bendigo Bank	1.25	1.5	2.9	3.4	3.1	3.8	3.7	3.6	2.95	3	3	3
BOQ	0.75	0.8	2.25	4.25↓	1.25	4.25↓	4.10↓	3.90↓	3.3	3.3	3.3
BOQ Specialist			4.25↓	4.30↓		4.40↓	4.20↓	4.00↓	3.5	3.5	3.5	3.5
Great Southern Bank	1.3	1.6	4.25	4.55	4.35	4.5	4.05	3.9	3.6	3.4	3.4	3.4
Defence Bank			4	3.6	3.7	4.1	4.1	4.2	3.75
Greater Bank	1	1	3.95	3.95	3.95	4.35	3.8	4	3.5	4	3.5	3.5
Heritage Bank	1.15	1.4	3.85	4.25↓	3.5	4.10↓	3.95	3.90↓	3.75↓	3.60↓	3.60↓	3.60↓
Horizon Credit Union	1.25	1.5	3.60↓	3.60↓		4	3.90↓	3.80↓	3.60↓	3.6
HSBC	1.85	2	4	3.5	3.5	3.9	3.9	3.9	3.5	3.5	3.5	3.5
IMB			4.35			4.25		4	3.75	3.75	4	4
ING Direct			4.35	4.25		4.25	4.15	4.05	3.8
in1bank	3.85	3.9	4.45	4.4	4.3	4.25	4.1	3.95	3.85
Judo Bank			4.35↓			4.45↓	4.25↓	4.15↓	4.05↓	4.05↓	4.35↑	4.45↑
Macquarie Bank	2.1	2.1	4.25	4.2		4.1	3.9	3.8	3.6	3.65	3.8	3.8
ME Bank	0.75	0.8	2.25	4.25↓	4.30↓	4.40↓	2	2	2	2	2	2
MyState Bank	0.5	0.5	4	4.2	4.4	4.4	4.1	4	3.75
Newcastle Permanent	1	1	3.95	3.95	3.95	4.35	3.8	4	3.5	4	3.5	3.5
People's Choice Credit Union		1.4	3.85	4.25↓	3.5	4.10↓	3.95	3.90↓	3.75↓	3.60↓	3.60↓	3.60↓
Police Bank			4.1	3.75	3	4.25	4.5	4.45
P&N Bank		1.6	4.3	4.15	4.50↑	4	3.9	4	4	4	4	4
RACQ Bank	0.55	1.6	4.15↓	3.5	3.5	4.20↓	4.00↓	4.00↓	3.3	3.3	3.3	3.3
Rabobank Australia	2	2.1	4.30↓	4	4	4.15↓	4.05	4.00↑	3.80↑	3.8	4.25↑	4.40↑
Rural Bank Limited			4.3	0	0	4.15	3.9	3.85	3.6	3.5	3.5	3.5
St.George Bank - Except VIC	1.25	1.45	2.75↓	2.90↓	3.00↓	3.05↓	3.30↓	3.75↓	2.80↓	2.90↓	2.90↓	2.90↓
Suncorp Bank	1.3	1.9	3.8	4.25	3.45	4.35	3.9	3.85	3.35	3.35	3.35	3.35
Teachers Mutual Bank			4.4	4.25	4.05	4.6	4.3	4.3	3.8	3.8
The Capricornian			3			3.25		3.8	3.7
Bank First	0.75	1	4.25	4.25		4.4	4.25	4.15	3.8	3.8	3.8	3.8