Forty-six banks cut interest rates in the last month, according to an article from interest rate comparison firm RateCity's Alex Ritchie on August 11.

She wrote the big four banks' average ongoing savings rate had fallen from 1.77 per cent to 0.81 per cent in the past year.

Ian Yates, the chief executive of older people's advocacy group COTA Australia, said it was a complex issue because the banks were under pressure from regulator APRA about their financials.

"It's a very serious issue for many retirees, the more conservatively focused retirees who like to keep cash in the bank as opposed to, for example, investing in the sharemarket," Mr Yates said.

"Obviously, there are better earning alternatives than money being left in a bank account or a term deposit (but) only a minority of people are financially literate about that."

He suggested independent financial advisors could help, and the extra money paid for independent advice might be more than made up for by higher returns.

"A significantly larger proportion of retirees are now getting their income out of their superannuation," Mr Yates said.

Mr Yates said superannuation returns were likely to decrease for a time because company earnings would fall, but he expected returns would remain much higher than bank interest rates and term deposit rates.

Tasmanian-based MyState Bank recently cut a range of savings interest rates.

"The recent changes to our savings accounts have been made in order to ensure we are appropriately balancing the needs and outcomes of both our deposit and lending customers," the bank said.

"At MyState Bank, we always endeavour to maintain the most competitive rates possible for our deposit customers.

"Therefore, MyState Bank customers do and will continue to enjoy highly competitive savings rates in the market.

"According to RateCity data, for example, MyState Bank's Bonus Saver product currently has the one of the highest savings rates in the market for customers that meet the conditions."