While all eyes were on mortgage lenders last month, to see how they would respond to the first widespread out-of-cycle rate rise, some financial institutions chose to drop at-call deposit rates as a way of relieving funding pressure.
According to the comparison site Infochoice, five deposit-takers cut at-call rates last month.
Bendigo and Adelaide Bank cut the rate on its Money Extra account by 20 basis points, from two per cent to 1.8 per cent. The bank also cut the rate on its Networth Cash Management account by 10 basis points, from 0.6 per cent to 0.5 per cent.
Ecu Australia cut the rate on its eSaver Internet Savings account by 25 basis points, from five per cent to 4.75 per cent. It also cut the rate on its Smart Saver account by 25 basis points, from two per cent to 1.75 per cent.
Horizon Credit Union cut the rate on its Horizon Direct account by 25 basis points, from 4.5 per cent to 4.25 per cent. And it cut the rate on its Redisavings account, by nine basis points, from 0.1 per cent to 0.01 per cent.
Service One cut a range of deposit account rates. These cuts include a 125 basis point reduction in its Money Management account, down from 2.75 per cent to 1.5 per cent.
Beirut Hellenic cut the rate on its Smart Saver account by seven basis points, from 3.1 to 2.4 per cent.