The Westpac Banking Corp (ASX: WBC) share price is in the red today amid news the bank has cut its savings rates.
The big bank cut its saving rates by up to 0.5% today, as did its subsidiaries St George, Bank of Melbourne, and Bank SA.
Right now, the Westpac share price is $25.81, 0.73% lower than its previous close.
That positions Westpac as the second worst performing big four bank on Friday. The Commonwealth Bank of Australia (ASX: CBA) share price is also in the red, down 0.32%.
Westpac cuts savings rates once more
The Westpac share price is struggling today amid its decision to cut its savings rates for the third time in less than 12 months.
According to Australian financial comparison business, RateCity, Westpac has cut the savings rates on its Life savings accounts by 0.5% for those aged between 18-29 years, and 0.1% for all other adults.
It has also lowered the introductory savings rate for its eSavers accounts by 0.1%.
RateCity stated Westpac has now lowered its savings rates 3 times since the Reserve Bank of Australia lowered the cash rate in November 2020.
RateCity.com.au’s research director, Sally Tindall, commented the savings rate drops, saying:
Westpac has caved to the pressure of the low-rate environment, cutting savings rates despite no move to the cash rate.
Westpac isn’t the only big bank to have cut its saving rates recently. The Commonwealth Bank cut its savings rates by up to 0.07% last month.
Westpac share price snapshot
Despite today’s dip, the Westpac share price has been performing well lately.
It has gained 31% since the start of 2021. It is also 53% higher than it was this time last year.