Millions of Australians have been hit hard by the Reserve Bank’s interest rate cut, it has been revealed.
Seven banks, including Macquarie, NAB and the Bank of Queensland (BOQ), have cut their savings account rates.
The BOQ has now lowered its “market-leading” rate for 14-35 year olds from 5.10% to 4.85%.
Canstar data said the competitive ongoing savings rate should rise to 4.75% after the Reserve Bank’s rate cut.
However, Canstar data insights director Sally Tindall said monthly terms and conditions must be met to access this rate.
ING and Move are still offering savings rates of 5%, but have not yet announced their new rates.
Although Commonwealth and ANZ banks have not yet issued an announcement regarding the new rate, it is believed that it will be announced by next Friday.
Meanwhile, as of last July, Australian households had deposited about $1.6 trillion in financial institutions, according to data from the Australian Prudential Regulation Authority.
