Westpac is the latest big bank to take the knife to interest rates on savings accounts, as lenders try to protect their profit margins from the pressure of ultra-low interest rates.

The bank on Friday cut savings rates by between 0.1 and 0.5 percentage points across three products, by lowering the introductory or bonus interest rates paid.

RateCity said it was third time the bank had cut its savings rates since November last year, when the Reserve Bank last cut official interest rates to a record low of 0.1 per cent.

“Westpac has caved to the pressure of the low-rate environment, cuttings savings rates despite no move to the cash rate,” said RateCity’s research director Sally Tindall.

The changes mean the bank’s eSaver product now has a maximum interest rate of just 0.3 per cent - though 0.25 percentage points of that comes from an “introductory” rate that is only paid for the first five months.

After that period, the account pays interest of 0.05 per cent.

The other rates that were cut on Friday were “bonus” rates, which are only paid if customers meet certain conditions such as depositing a minimum amount each month.

A Westpac spokeswoman said the bank had considered the “different needs of stakeholders” in making the change. “We are operating in a historically low interest rate environment and there is continued pressure on our savings and deposit rates,” she said.

Westpac shares were down 0.4 per cent at $25.90 in early afternoon trading.