So far, Westpac is the only bank to disclose changes to its savings rates, while ANZ, NAB, and Commonwealth Bank have yet to announce any adjustments, although they are expected to eventually reduce their deposit rates as well.

“Those are not attractive returns.”

The situation is likely to deteriorate further, as market predictions suggest another rate cut by the Reserve Bank by August, with at least two additional cuts by February, potentially reducing the official cash rate to 3.10 percent.

“While the May cash rate reduction might be a cause for celebration for mortgage holders, it’s likely to be disappointing news for savers,” commented Tindall.

“Cash rate cuts are always bittersweet…

“In the case of the banks still to announce savings rates – which is currently the vast majority – no news is not necessarily good news. You can expect these rates to fall over the next two to three weeks.

“While there are still savings rates starting with a ‘5’, at this point we’re clinging on to them for dear life.”