Savers' interest rates have been falling since the Reserve Bank cut the Official Cash Rate last week, with greater alacrity from some banks than mortgage rates.
As of Monday afternoon, a range of banks including Kiwibank, TSB, ANZ and BNZ have cut the interest rates being paid on a range of savings products. Westpac made a series of cuts before the Reserve Bank lowered the OCR by 25 basis points to its record low of 2.25% last week.
ANZ, which made headlines for passing on just 10 basis points of the OCR cut to its floating mortgage rate customers, has dropped its online savings interest rate by 25 basis points to just 0.75%. It has also cut its Cash PIE rate by 25 basis points to 0.75 basis points. And ANZ has cut its "School Plus" savings rate by 25 basis points to 1.20%.
Kiwibank has cut one, three, six, nine month and one year term deposit rates by between 15 and 55 basis points. It has also cut two, three, four and five year rates by 20 basis points. The 55 basis points cut to Kiwibank's one month rate takes it to 1.75%, which is still higher than some rivals.
BNZ and TSB, which at the time of writing, have yet to announce any changes to home loan rates since the OCR cut, have taken the red pen to some savings rates. TSB has dropped its three month, nine month, one year and 15 month term deposit rates by between five and 15 basis points. BNZ has cut its "Personal Oncall" and "Business First Oncall" rates by 25 basis points to 1%, and its Cash PIE rate by the same amount to 1%.
Westpac cut one month, three month, six month, nine month, one year and 18 month term deposit rates by between five and 25 basis points, with its one month rate down 25 basis points to 1%. The red bank also cut its two, three, four and five year rates by five basis points. Westpac's Online Saver rate has also been dropped 25 basis points to 1%, as has its "Simple Saver" youth account.
Both Westpac and Kiwibank have cut Term PIE rates including for three months, six months and one year terms. Westpac's cuts range from five to 16 basis points, Kiwibank's between 15 and 31 basis points. Kiwibank and Westpac's three and six month rates are now the same, however Kiwibank's one year standard rate is five basis points higher than Westpac's at 3.30%. Westpac has also snipped 25 basis points off its Online Saver PIE and Online Bonus Saver PIE rates, dropping them to 1% and 2.75%, respectively.