Finally, a whiff of competition: Macquarie, ING up the ante on savings rates

Macquarie and ING have today announced major increases to the interest rates on their transaction and savings accounts respectively.

Macquarie Bank has announced it will be increasing the interest rate on its transaction account from 0.20 per cent to a market leading 1.50 per cent on balances up to $250,000, effective 17 June 2022.

The highest interest rate from a big four bank on their main transaction account is just 0.02 per cent from ANZ on balances over $100,000.

Also today, ING has increased the interest rate on its Savings Maximiser account by 0.75 percentage points to 2.10 per cent on balances up to $100,000, effective 15 June 2022. This is more than the RBA cash rate hike of 0.50 percentage points, however, the bank did not pass on the last hike in May.

When it takes effect, it is likely to be the highest ongoing savings rate for all adults.

RateCity.com.au database shows:

• 35 banks (39%) offer interest on their transaction accounts, the highest on the RateCity database until today being 1.05% from Australian Military Bank (for eligible defence force members only), then 0.75% from Afterpay.
• CBA and Westpac do not offer interest on their main banking accounts. NAB and ANZ offer 0.01% and up to 0.02% respectively.
• 3 of the 4 big banks, Westpac, NAB and ANZ, have not announced any hikes to savings accounts at this stage.
• CBA is passing on the full 0.50% hike to its GoalSaver and Youthsaver accounts, effective 17 June.

RateCity.com.au research director, Sally Tindall, said Macquarie and ING have both upped the ante following Tuesday’s landmark double rate hike.

“Finally, we have some proof that competition in the savings sector isn’t dead and buried,” she said.

"ING and Macquarie have reset the battlefield for savings rates in what is ultimately a win for savers.

“CBA, Macquarie and ING have now all made significant increases on some of their most popular accounts. This will put pressure on other banks, in particular, Westpac, NAB and ANZ, to pass on this RBA hike to their savings customers.

“Macquarie’s interest-generating transaction account is a game changer for Australians looking to earn interest without any convoluted fine print. What you’ll see is what you’ll get with this account, regardless of how you transact.

“With no hoops to jump through to earn the maximum amount of interest every month, no penalties for withdrawing money and no requirement to transfer money back and forth, this is a breath of fresh air from Macquarie.

“ING has also upped the ante in the savings space, hiking its popular Savings Maximiser by 0.75 percentage points, to 2.10 per cent.

“ING’s savings account does come with a list of monthly terms and conditions, however, serious savers might find they’re willing to jump through some hoops to qualify for this market-leading rate.

“Customers sick of earning peanuts on their hard-earned cash would do well to shop around now the competition in the savings market is finally picking up,” she said.

Big four bank everyday transaction accounts

Source: RateCity.com.au.

Current highest ongoing savings rates on RateCity.com.au for all adults

Notes: terms and conditions apply for maximum rates. ING rate effective 15 June.

Current highest ongoing savings rates on RateCity.com.au for young adults

Note: terms and conditions apply for max rate.

Current big four bank bonus saver accounts

Source: RateCity.com.au. Conditions for max rate apply. CBA rate effective 17 June.

Current big four bank online saver accounts

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

Compare savings accounts