The OCR rate cut has a direct impact on savings rates, and as fast as banks have been to cut their variable home loan rates, they have also promptly cut savings account rates as well.
The first to move was the Cooperative Bank who cut a range of savings rates, their Step Saver by only -20 bps, keeping it from dipping below 2%. Westpac has announced its moves too, trimming its Bonus Saver by the full -25 bps but leaving their Notice Saver unchanged.
ANZ has cut its potential Serious Saver rate by -15 bps to 1.50%.
This is what has happened so far. We will update this summary as changes are announced.
| max potential rate | Account | was | cut | Now |
| % | bps | % | ||
| ANZ | Serious Saver | 1.65 | -15 | 1.50 |
| ASB | Savings Plus | 1.80 | -20 | 1.60 |
| BNZ | Rapid Save | 2.00 | ||
| Kiwibank | Online call | 1.50 | -25 | 1.25 |
| Westpac | Bonus Saver | 1.50 | -25 | 1.25 |
| Cooperative Bank | Step Saver | 2.20 | -20 | 2.00 |
| Heartland Bank | Digital Saver | 2.35 | -30 | 2.05 |
| Call Direct | 1.80 | -15 | 1.65 | |
| Rabobank | Premium Saver | 2.45 | ||
| SBS Bank | Incentive Saver | 0.40 | ||
| TSB | WebSaver | 1.20 | -20 | 1.00 |
Notice saver account changes
| Account | was | cut | Now | |
| % | bps | % | ||
| Kiwibank | 32 days notice | 1.80 | -25 | 1.55 |
| 90 days notice | 2.35 | -25 | 2.10 | |
| Westpac | 32 days notice | 3.00 | 0 | 3.00 |
| Heartland Bank | 32 days notice | 3.15 | -45 | 2.70 |
| 90 days notice | 3.50 | -55 | 2.95 | |
| Rabobank | 60 days notice | 3.40 |
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2 Comments
This is really terrible for savers, inflation is eating away at their savings at a higher rate then interest is earned. I sure way to go backwards. Some will still keep their money in Term Deposits, but others will move the money in search of a better, or rather less b ad return.
Wher will this money flow into is THE question ?
Savings take an immediate drop. Mortgages and overdraft take longer. Same when OCR increases, mortgage rate immediately change but deposit rate take weeks. Perhaps it a system limitation...tui.
Just like the casino, the banks always wins.
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