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The savings accounts coming up trumps post RBA hike

The savings accounts coming up trumps post RBA hike

CBA has today hiked rates for its variable home loan customers and one savings account by 0.25 percentage points, following this month’s historic RBA hike.

Australia’s biggest bank is the last of the big four to move rates, with NAB and ANZ hiking last Friday (13 May) and Westpac moving on Tuesday (17 May).

CBA’s 2 million NetBank Saver customers will today see their ongoing rate rise from 0.05 per cent to 0.30 per cent. However, its GoalSaver, Youthsaver and Pensioner Security account remain unchanged.

Westpac is the only big four bank to lift rates on its adult, kids and retiree accounts. However, on the eSaver account, only the introductory rate has risen, which means existing customers won’t see an increase.

Big four banks’ savings accounts – what’s changed since the May RBA hike?

22.05.20 big 4 savings account changes

RateCity.com.au database – changes to savings accounts since the May cash rate hike:

  • 3.00% is the new highest rate for young adults from BOQ (up 1.00% points).
  • 1.60% is the new highest ongoing savings rate for all adults from Virgin Money (up 0.25% points).
  • 24% of banks on the database have hiked at least one savings rate so far since 3 May.
  • 18% of savings accounts have increased rates since 3 May.
  • The average ongoing savings rate before the hike was 0.28%. Today it is 0.31%.

RateCity.com.au research director, Sally Tindall, said: “The banks’ response to the May cash rate hike for savers has been lukewarm at best.”

“Savers were looking to the first cash rate hike in over a decade with hope, but for millions of Australians their rate hasn’t moved an inch,” she said.

“A handful of banks have, however, stepped up to the plate.

“Bank of Queensland has hiked its Future Saver account by a jaw-dropping 1 percentage point. At a maximum rate of 3 per cent, it now has the highest ongoing savings rate for young adults.

“Virgin Money is the new market leader for adults of all ages. It has hiked its Boost Saver by 0.25 per cent, to a maximum ongoing rate of 1.60 per cent. Just be warned, there are plenty of hoops to jump through to qualify for this rate, including a 32-day notice period to access your cash.

“CBA has done the right thing by hiking the ongoing rate on its popular NetBank Saver. However, at just 0.30 per cent, there’s little for existing customers to crow about.

“Meanwhile CBA customers with a GoalSaver, Youthsaver or Pensioner Security account aren’t getting a dime extra in interest, at this stage.

"Out of the big four banks, Westpac has gone the furthest, with its kids and retiree accounts also getting a boost.

“With deposits at a record high, most banks have been unwilling to hike savings rates across the board. In a market devoid of substantial competition, they’re likely to get away with it.

“Savings customers who aren’t happy with their bank’s response to the May cash rate hike should consider shopping around. Voting with your feet is one of the few ways to get the banks to really take notice,” she said.

Post RBA hike – big four bank bonus saver accounts

BankAccountMax rate
CBAGoalSaver

0.25%

WestpacLife

0.50%

NABReward Saver

0.50%

ANZProgress Saver

0.40%

Source: RateCity.com.au. Conditions for max rate apply.

Post RBA hike – big four bank online saver accounts

BankAccountMax intro rateOngoing rate
CBANetBank Saver

0.50% for 5 mths

0.30%

WestpaceSaver

0.50% for 5 mths

0.05%

NABiSaver

0.30% for 4 mths

0.05%

ANZOnline Saver

0.15% for 3 mths

0.05%

Source: RateCity.com.au. Conditions for max rate apply.

Bonus saver accounts: Max rates
Market leaders
Virgin Money Boost Saver

1.60%

ING Savings Maximiser

1.35%

AMP Bank Saver Account

1.35%

UBank Save Account (formerly 86 400)

1.20%

Young adults market leaders
BOQ Future Saver (14-35)

3% up to $50K

Westpac Life (18-29)

2% up to $30K

Police Bank Super Charge (18-29)

2% up to $30K

Source: RateCity.com.au. Monthly conditions apply for max rate.

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This article was reviewed by Data Research Specialist Piyush Pillai before it was published as part of RateCity's Fact Check process.

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