Major hits depositors with full rate cut on the sly

by Caroline Dann15 Oct 2012

CBA dropped 25 basis points from its deposit rates, a week after announcing it would not pass on the full rate cut to its standard variable rate.

In announcing its failure to pass on the full RBA cut to mortgage holders last week, CBA said it was balancing "the needs of 1.8m home loan borrowers with those of its 11m depositors and its shareholders." 
"One significant factor impacting this balancing of needs has been the increase in the cost of deposits noted in the Reserve Bank of Australia’s most recent Financial Stability Review. This increase, benefitting depositors, has resulted from increased competition for deposits, as Australian banks reduce their reliance on wholesale funding," the bank said.
But the bank has now hit deposit holders with the full RBA decrease while holding 5bps back from mortgage holders.
The cut was not made official through any press release or statement from the bank; however, comparison site Rate City found the rate on its Netbank Saver dropped to 4.75% on Friday.
ANZ was the last to announce its cuts on Friday, which were five basis points short of the full RBA cuts.
Meanwhile, CBA released an official statement claiming its three, four and five-year fixed rates were at a "22-year low."
It cut the rates by up to 30 basis points, with its one, two and three-year rates sitting at 5.39%, and its four and five-year rates at 5.69%.
Related news:

Rate cut pays off for second tier


  • by sidbroker 15/10/2012 9:32:26 AM

    Vote with your feet.