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RBA rate hikes kick in for variable borrowers and select savers

Liz Seatter avatar
Liz Seatter
- 5 min read
RBA rate hikes kick in for variable borrowers and select savers

More than half of Australia’s variable mortgage customers will see their rates rise by 0.25 percentage points from today as CBA, NAB, ANZ and Macquarie’s October RBA rate hikes take effect.

The majority of the banks’ savers will also see a boost to their rates from today – but not all.

Last Tuesday, CBA announced it would lift all key savings accounts, in many cases by more than the 0.25 percentage points prescribed by the RBA. ANZ announced one savings rate would rise while NAB said nothing.

NAB and ANZ, have today revised their savings announcements, in light of strong market competition. Westpac is set to change its rates next Tuesday.

CBA, NAB, ANZ savings rate changes– existing customers

Bank oct savings table

These big banks have also significantly increased the introductory rate on their online saver accounts for new customers for the first three to five months (see below).

While CBA and NAB have hiked their main savings accounts this month, what ultimately matters are the rates customers are getting.

In most cases, the big bank ongoing savings rates are still on par with, or below, the cash rate.

Big four bank online saver rates

BankAccountIntro rateOngoing rate
CBANetBank Saver3.00% for 5 mths1.10%
Westpac*eSaver2.55% for 5 mths0.85%
NABiSaver3.00% for 4 mths1.10%
ANZOnline Saver1.90% for 3 mths0.60%

Source: RateCity.com.au. *Westpac rates effective 18 Oct.

Big four bank bonus saver rates

BankAccountMax ongoing rate
CBAGoalSaver2.40%
Westpac*Life2.60%
NABReward Saver2.50%
ANZProgress Saver2.00%

Source: RateCity.com.au. Conditions for max rate apply. *Westpac rates effective 18 Oct.

Some of the highest savings rates

AccountRateMonthly terms and conditionsBalance for max rate
ING Savings Maximiser4.05% ongoingGrow savings bal/mth plus deposit $1K and make 5+ purchases in linked trans. acct.$100,000
Macquarie Savings4.00% for 4 mths, then 3.20%None.$250,000
BOQ Future Saver4.00% ongoingAges 14 – 35. Deposit $1K and make 5+ purchases in linked trans. acct.$50,000
Westpac Spend & Save*3.75% ongoingAges 18 – 29, grow savings bal/mth plus make 5+ purchases in linked trans. acct per month.$30,000

Source: RateCity.com.au. Conditions for max rate apply. *Westpac rates effective 18 Oct.

RateCity.com.au research director, Sally Tindall, said: “CBA has led the charge this month with a decent hike for its savers, forcing others to follow.”

“However, one month of good behaviour doesn’t mean big bank customers are suddenly on a good rate,” she said.

“Even after this round of hikes, the vast majority of big bank savings rates are still on par or below the cash rate. That’s not good enough.

“Complacent savers are losing out – and some might not even realise it.

“If you’re proactive, you can finally get a decent savings rate. However, if you haven’t done a health check on your nest egg recently, chances are you’re on a lousy interest rate,” she said.

Latest round of RBA mortgage hikes take effect today

CBA, NAB and ANZ variable mortgage customers will see their interest rates increase by 0.25 percentage points today as a result of the October RBA rate rise.

Customers will be charged these higher rates from today, however, most borrowers’ repayments will take between two and three months to increase. This is because there’s a delay between the rate rise and when customers receive notification from their bank. Banks then typically give customers between 20- and 30-days’ notice to prepare.

In total, variable rate borrowers have seen their rates rise by 2.50 percentage points since May, taking the average existing variable owner-occupier rate to an estimated 5.36 per cent.

RateCity.com.au analysis:

  • 4.09% will be the lowest variable rate from lenders which have announced Oct RBA changes.
  • For someone who had a $500,000, 25-year loan before the RBA rate rises began in May, they’ll be paying an extra $687 a month to their lender as a result of the hikes.
  • 34 lenders have cut new customer variable rates since the RBA hikes began in May, including all big four banks.

Sally Tindall said: “Customers should be aware there’s a significant lag between when the RBA hikes rates and when they start seeing extra money come out of their bank account.”

“Customers might think they’ve successfully accounted for six rate hikes, when in actual fact, they’ve only been hit with three, possibly four,” she said.

“While the RBA scaled back the size of the hike this month, the Board is not about to stop altogether.

“There’s almost certainly more pain ahead for borrowers, with some economists forecasting another 1 percentage point of RBA hikes.

“One way borrowers can build up a buffer and prepare for rising rates, is to work out what their repayments would be if their interest rate was 6 per cent, and start paying that amount now.

“If your budget can’t cope, start making cutbacks and changes now, before it’s too late,” she said.

Lowest variable rates on RateCity.com.au

From lenders which have announced October RBA hikes

LenderRate
Bank First4.09%*
Bank of Sydney4.14%
Greater Bank4.20%

Source: RateCity.com.auLVR restrictions may apply. *Bank First rate effective 21 October.

Big four banks lowest variable rates

Lowest variable
CBA4.44%
Westpac4.24% for 2 yrs then 4.64%
NAB4.49%
ANZ4.44%

Source: RateCity.com.au. Notes: rates are for owner-occupiers paying principal and interest. LVR requirements apply on some rates. Westpac rates effective 18 October.

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Product database updated 26 Feb, 2024

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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product data updated on

Product data updated on 26 Feb 2024