Commonwealth Bank

News: CBA Deposit Interest Rates Cuts Hit Savers

Commonwealth Bank (CBA) has cut a range of term deposit interest rates for the second time since August.

The bank blamed the cuts, which took effect last week, on changes in credit markets and the globally low- interest rate.

The rate cuts apply to six-term deposit products, spanning from three months to five years, by 5 to 15 basis points.

“The reason we have made changes to interest rates on some deposit accounts is due to the record-low interest rate environment, changes in underlying funding costs in local and international funding markets, and competitive conditions that affect the interest rates we are able to pay,” said Clive van Horen, executive general manager of retail products and strategy at CBA.

In August, CBA raised deposit rates and marketed it as a win for savers after the Australia’s big four banks passed on half of the Reserve Bank of Australia’s rate cuts to mortgage holders.

CBA reversed these cuts in September, and ANZ, NAB, and Westpac followed suit in October.

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