The Commonwealth Bank has cut the savings rate on its youth savings deposit account by 0.1 per cent. Picture: Hollie Adams/The Australian
The Commonwealth Bank has cut the savings rate on its youth savings deposit account by 0.1 per cent. Picture: Hollie Adams/The Australian

CBA cuts saving rate on kids’ accounts

Commonwealth Bank has slashed interest rates on several of its savings products including its youth deposit account synonymous with the financial incumbent's Dollarmite program.

The country's largest bank has cut the savings rate on its youth savings deposit account by 0.1 per cent, now attracting a conditional maximum savings potential of 1.2 per cent.

CBA's standard NetBank Saver account has also experienced a 0.05 per cent carving, with the five-month introductory offer now attracting a rate of 1 per cent. The ongoing rate thereafter is 0.05 per cent.

"Today's cuts to CBA's Youthsaver will be a blow to kids around the country who use this account to learn about saving," RateCity research director Sally Tindall said.

"It serves as a good reminder for both parents and kids to shop around for a competitive rate."

The rate carvings follows Westpac's decision on Wednesday to introduce a special offer to young savers that includes a 3 per cent savings rate for Westpac customers aged 18 to 30 years old.

Australia's ongoing low-interest environment has been brought on by numerous cash rate cuts by the Reserve Bank, which has attempted to alleviate pressures facing the economy.

In March, the RBA cut the official cash rate by 25 basis points to 0.25 per cent in response to the economic downturn induced by the coronavirus pandemic.

 

Originally published as CBA cuts saving rate on kids' accounts


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