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Big banks bow to savings rate pressure

Alex Ritchie avatar
Alex Ritchie
- 5 min read
Big banks bow to savings rate pressure

Three of the big four banks have today increased key savings rates by significantly more than last week’s 0.25 percentage point increase from the RBA, as the spotlight continues to shine on deposit rates.

Big four banks CBA and NAB have today increased the ongoing rates on key savings accounts by up to 0.75 percentage points, as previously announced on the back of the February cash rate increase.

Last week, ANZ announced it would lift just one savings rate on the back of the RBA decision - its Plus Save account by 0.25 percentage points. 

Today, however, the bank has decided to increase the ongoing rates on its two main savings accounts, the Progress Saver by up to 1 percentage point and its Online Saver by 0.25 percentage points.

Westpac’s savings rate changes are not due until Tuesday although at this point, the bank has only announced select increases of up to 0.25 percentage points.

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  • Bonus interest with conditions
  • Online banking
  • Linked account required
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Maximum rate p.a.

5.35%*

Base rate p.a.

0.05%

More detailsclick for more details

How the banks’ savings rates stack up

While some banks have increased rates beyond the RBA’s 0.25 percentage point rise this month, what ultimately matters is what rate customers are receiving on an ongoing basis.

Customers should be aiming for an ongoing interest rate that’s at least 4 per cent, while keen savers can now get ongoing rates of up to 4.80 per cent.

On this measure, a number of the big four bank savings accounts continue to fall short.

Big four bank savings account rates – today vs before the rate hikes

BONUS SAVERS

Account

1-May-22

Today

Increase

% points

Conditions for max rate

CBA GoalSaver

0.25%

4.00%

3.75%

Grow balance each mth

Westpac Life

0.25%

4.00%*

3.75%

Grow balance each mth

NAB Reward Saver

0.25%

4.00%

3.75%

1 deposit, no withdraw / mth

ANZ Progress Saver

0.15%

3.50%

3.35%

$10+ dep, no withdraw/mth

ONLINE SAVERS

Existing customer rates

Account

1-May-22

Today

Increase

% points

Intro rate and conditions

CBA NetBank Saver

0.05%

1.60%

1.55%

4% for 5 mths. No conditions. 

Westpac eSaver

0.05%

0.85%

0.80%

4%* for 5 mths. No conditions. 

NAB iSaver

0.05%

1.35%

1.30%

4% for 4 mths. No conditions. 

ANZ Online Saver

0.05%

0.85%

0.80%

2.65% for 3 mths. No conditions. 

OTHER

Account

1-May-22

Today

Increase

% points

Difference  (% points)

Westpac Spend&Save

(18-29 yrs)

2.00%

4.35%*

2.35%

Grow bal each mth. 5+ purchases in linked bank account.

ANZ Plus Save (15 yrs+)

0.50%

4.00%

3.50%

None

Source: RateCity.com.au. Data accurate 17/02/2023. *Westpac rate effective 21/02/2023.

Highest ongoing savings rates

Excludes kids and young adult savings accounts

Account

1-May-22

Today

Increase

% points

Conditions for max rate

ING Savings Maximiser

1.35%

4.80%

3.45%

Deposit $1K+ and make 5+ purchases in linked bank acct. Grow bal each mth.

Great Southern Bank Home Saver

1.05%

4.65%

3.60%

Deposit $2k+ and 5+ transactions / mth in lined bank acct.

Virgin Money Boost Saver

1.35%

4.60%

3.25%

Deposit $2K+ and 5+ purchases in linked bank acct. 32 days’ notice to access funds. 

Move Bank Growth Save

N/A

4.50%

N/A

Deposit $200+ and no withdrawals / mth.

MyState Bank

1.10%

4.35%

3.25%

Deposit $20+ in savings and make 5 eligible transactions every month.

Source: RateCity.com.au. Data accurate 17/02/2023.

Interest earned on $25,000

Rate

Interest in an average mth

Interest over 1 year

0.85%

$18

$213

4.50%

$96

$1,148

Source: RateCity.com.au. Assumes terms and conditions are met to qualify for rate. Does not include potential rate changes or include any additional deposits.

RateCity.com.au research director, Sally Tindall, said: “The big banks might have pulled their socks up this month but that still doesn’t mean every one of their savings customers is now on a cracking rate.” 

“In fact, the imbalance is amplifying as the proactive customers bask in extra interest, while millions of sedentary savers continue to trail behind,” she said. 

“ANZ has today upped the ongoing rate for its Online Saver customers from 0.60 per cent to a laughable 0.85 per cent – almost four times below the current cash rate. 

“For someone with $25,000 in this account, they’re in line for a measly $63 extra a year, yet if they switched to an ongoing rate of 4.5 per cent or more, they could increase their interest by a further $935, provided they meet the monthly terms and conditions.

“Savers who don’t like jumping through hoops aren’t going to nab a market-leading ongoing rate, however, there are now a handful of relatively competitive accounts without any pesky monthly terms and conditions,” she said.

Highest ongoing savings rates with no monthly terms and conditions ($50K balance) 

Account

Interest Rate

ANZ Plus Save

4.00%

Bankwest Easy Saver

4.00%

Macquarie Bank Savings Account

4.50% for 4 months, then 3.80%*

Australian Unity Freedom Saver

3.75%

Citi Online Saver

4.00% for 4 months ,then 3.60%

Source: RateCity.com.au. Data accurate 17/02/2023. Macquarie ongoing rate effective 23/02/2023.

Compare savings accounts

Maximum rate condition

4.25%

intro 3 months then 3.75%*

Not Applicable

*Deposit at least $50 and make no withdrawals e...

  • Bonus interest with conditions
  • Intro offer rate
  • App banking
  • Online banking

3.50%*

0.01%

*Make a deposit (of any amount) and no withdrawals

  • Bonus interest with conditions
  • App banking
  • Online banking

Product database updated 23 Jul, 2024

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

Promoted savings accounts

ubank

High Interest Save Account

Real Time Rating™

  • Bonus interest with conditions
  • Online banking
  • Linked account required

Maximum rate p.a.

5.50%*

Base rate p.a.

Not Applicable

ING

Savings Maximiser

Real Time Rating™

  • 2024 Award Winner
  • Bonus interest with conditions
  • App banking
  • Online banking

Maximum rate p.a.

5.50%*

Base rate p.a.

0.55%

Horizon Bank

Reward Saver

Real Time Rating™

  • Bonus interest with conditions
  • Intro offer rate
  • App banking
  • Online banking

Maximum rate p.a.

4.25%

intro 3 months then 3.75%*

Base rate p.a.

Not Applicable

Credit Union SA Ltd

Bonus Savings Account

Real Time Rating™

  • Bonus interest with conditions
  • App banking
  • Online banking

Maximum rate p.a.

3.50%*

Base rate p.a.

0.01%

product data updated on

Product data updated on 23 Jul 2024