As more Australians save, banks are cutting interest rates for deposits faster than the RBA’s official cash rate

Major lenders have cut the rates offered to savers faster than the RBA has cut its own key interest rate since the start of 2024. Photograph: Brain light/Alamy

Leading banks are racing to cut interest rates offered to savers, despite the Reserve Bank leaving the official cash rate on hold this month, as households flood banks with deposits.

ANZ on Friday cut the full rate on its progress saver account from 3.5% per year to 3.4% despite the RBA leaving its target rate unchanged a week earlier in a shock move.