How Much Can You Earn on a Bank Saving Account in 2019.
When the RBA reduces the Cash rate, as happened on the first Tuesday in June 2019 and again in July 2019, everyone talks about the savings that Mortgage Holders might get.
Interest Rate reductions may be a new thing for some people, as the RBA hadn’t changed the Cash Rate since 2nd August 2016, before the drop in June this year. (2019)
But how does it affect those with savings in an Australian Bank?.
I can’t easily compare every bank, but one example I can give is the Ubank Savings Account Rates during 2018 and 2019.
From the 1st March 2018, the rate that UBank paid every month (No minimum balance applies) was 2.87%.
On the 4th June 2019: The RBA reduced the cash rate by 0.25%.
On the 27th June 2019: Ubank reduced the interest they paid by 0.27%, down to 2.60%
Another drop will be expected in late July, following the RBA reducing the cash rate by another 0.25% on 2nd July 2019.
Other banks probably do something very similar.
Examples of Australian Bank Savings Interest Rates at 6th July 2019, before July reductions.
- 1.40% CBA GoalSaver, on Balances Under $50,000, when you deposit at least $200 and make no withdrawals in the calendar month. www.commbank.com.au
- 2.60% Ubank USaver + Ultra, on Balances Under $200,000, when you deposit at least $200. Withdrawals allowed. www.ubank.com.au
- 2.10% Westpac Life, when you deposit at least $1. Withdrawals allowed. www.westpac.com.au
- 2.05% NAB Reward Saver, when you deposit at least $1 and make no withdrawals in the calendar month. www.nab.com.au