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- Savings rates could hit 6% by August as deposits hit a new record high
Savings rates could hit 6% by August as deposits hit a new record high
A total of 12 banks are now offering ongoing savings rates of 5 per cent or more, with two banks leading the charge with rates of 5.50 per cent.
Three of the big four bank economic teams expect the cash rate to rise by another 0.25 percentage points on Tuesday, with Westpac, NAB and ANZ expecting it to peak at 4.60 per cent by August.
While CBA is expecting rates to stay on hold on Tuesday with one more rise in August, the other three big bank economic teams are expecting the cash rate to rise in July, and again in August.
If this happens, savings rates could hit 6 per cent in the next couple of months.
Highest ongoing savings rates (excludes kids accounts)
| Account | Max rate | Base rate | Balance cap | Conditions |
| ING Savings Maximiser | 5.50% | 0.55% | $100K | Deposit $1K in linked account, make 5+ purchases and grow bal / mth |
| BOQ Future Saver
(ages 14 – 35) | 5.50% | 0.05% | $50K | Deposit $1K in linked account, make 5+ purchases / mth. Waived if under 18 |
| Virgin Money Boost Saver | 5.35% | 0.05% | $250K | Deposit $1K in linked account, make 5+ purchases, 32 days’ notice to access funds |
| Great Southern Goal Saver
(ages 18 -24) | 5.35% | 0.50% | $50K | Deposit $500 and make 5 transactions / mth |
| Move Bank Growth Saver | 5.25% | 0.10% | $25K | Deposit $200, make no withdrawals / mth |
| Bendigo Reward Saver | 5.25% | 0.30% | $100K | Make one deposit, hold linked transaction account, end of month balance is greater than start of the month |
| Great Southern Home Saver | 5.25% | 0.50% | $100k | Deposit $2K and make 5+ transactions/ mth |
Source: RateCity.com.au. Note: base rate is the rate applied when conditions are not met for that month.
Australians continue to put record savings into the banks
The steady climb to the nation’s highest ongoing savings rates comes as Australians continue to squirrel money away in the bank.
APRA data released today shows deposits from households hit yet another high with $1.38 trillion recorded in May. This is an increase of $5.2 billion from the previous month.
APRA Monthly Banking Statistics: deposits from households
| Amount | Monthly change | Year-on-year change | Change since start of COVID (Jan 2020) |
| $1.38 trillion | +$5.2 billion
+0.4% | +$106.56 billion
+8.4% | +$390.79 billion
+39.6% |
Note: includes money in savings, term deposit, transaction and offset accounts.
RateCity.com.au research director, Sally Tindall, said: “The latest APRA figures continue to defy logic, hitting yet another record high after 12 cash rate hikes.
“Some households that still have spare capacity in their budgets are opting to squirrel that money away to boost their war chest in case of recession,” she said.
“Australians have over $390 billion more in the bank than they did before COVID – this is an all-mighty buffer for the nation to fall back on.”
“The problem is, some people are still spending up big at the shops, others are stashing it at the bank, while many families are living month-to-month with their budget often in the red.”
“Savings rates have already hit 5.50 per cent. They could very well break the 6 per cent barrier if many of the economists’ forecasts are realised,” she said.
“If you’re looking to maximise your interest, spend 15 to 30 minutes looking at your options to see if you can do better elsewhere.”
“Before you sign up to a new high interest savings account, have an honest conversation with yourself about whether you’ll qualify for the bonus interest each month.”
“While the maximum rates look fantastic on paper, a couple of slip ups could see your interest rate drop to the floor,” she said.
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Product database updated 29 Apr, 2024
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