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- Savings rates rise on back of RBA hike, but many still trail well behind the cash rate
Savings rates rise on back of RBA hike, but many still trail well behind the cash rate
The majority of big four bank savings customers will receive a boost to their interest rate today as the banks pass on the May RBA hike.
ANZ, in particular, has boosted each of its savings accounts, after initially announcing an increase on just one account.
Most savings rates rose by 0.25 percentage points, with the following exceptions:
- CBA’s NetBank Saver customers will only see a 0.10 percentage point rise to their ongoing rate.
- Westpac’s existing eSaver customers will not see an increase at all.
- Westpac’s Spend&Save account for young adults has increased by 0.30% pts.
Westpac now has the highest and lowest ongoing savings rates out of the big four banks.
- Westpac Spend&Save has a maximum ongoing rate of 5.00% - the highest from a big four bank. However, this rate is only available to customers aged 18 to 29 on balances up to $30,000.
- Westpac’s eSaver account still offers existing customers a rate of just 1.10 per cent – the lowest out of the big four bank savings accounts.
RBA May savings increases for existing customers
Bank | Bonus saver | Online saver | Kids saver | Other accounts |
CBA | +0.25% | +0.10% | +0.25% | N/A |
Westpac | +0.25% | +0.00% | +0.25% | +0.30% Spend&Save |
NAB | +0.25% | +0.25% | N/A | N/A |
ANZ | +0.25% | +0.25% | +0.25% | +0.25% Plus Save |
Source: RateCity. Data accurate as of 12/05/2023.
Big four bank savings account rates – May 2022 to May 2023
BONUS SAVERS | |||||
Account | 1-May-22 | After May hike | Increase % pts | Conditions for max rate | |
CBA GoalSaver | 0.25% | 4.40% | 4.15% | Grow balance each mth | |
Westpac Life | 0.25% | 4.50% | 4.25% | Grow balance each mth | |
NAB Reward Saver | 0.25% | 4.50% | 4.25% | 1 deposit, no withdraw / mth | |
ANZ Progress Saver | 0.15% | 4.00% | 3.85% | $10+ dep, no withdraw/mth | |
ONLINE SAVERS | |||||
Existing customer rates | |||||
Account | 1-May-22 | After May hike | Increase % pts | Intro rate and conditions | |
CBA NetBank Saver | 0.05% | 1.95% | 1.90% | 4.50% for 5 mths. No conditions. | |
Westpac eSaver | 0.05% | 1.10% | 1.05% | 4.50% for 5 mths. No conditions. | |
NAB iSaver | 0.05% | 1.85% | 1.80% | 4.50% for 4 mths. No conditions. | |
ANZ Online Saver | 0.05% | 1.35% | 1.30% | 3.15% for 3 mths. No conditions. | |
OTHER | |||||
Account | 1-May-22 | After May hike | Increase % pts | Conditions for max rate | |
Westpac Spend&Save (18-29 yrs) | 2.00% | 5.00% | 3.00% | Grow bal each mth. 5+ purchases on linked bank account. | |
ANZ Plus Save (15 yrs+) | 0.50% | 4.50% | 4.00% | None | |
Source: RateCity. Data accurate as of 12/05/2023.
Highest ongoing savings rates on RateCity database
(excludes kids accounts)
Account | Max rate | Balance for max rate |
$50,000 | ||
$100,000 | ||
$250,000 | ||
$25,000 | ||
$10,000 | ||
$30,000 | ||
$50,000 | ||
$250,000 |
Source: RateCity. Data accurate as of 12/05/2023. *Note bank is yet to announce its May RBA hike. Monthly conditions apply for max rate. Excludes kids savings accounts.
RateCity.com.au research director, Sally Tindall, said: “Savings rates are broadly moving in the right direction, however, the gap between the highest and lowest rates continues to widen with every rate hike.”
“Proactive customers are now enjoying rates of 5 percent or more, while complacent ones are still stuck on rates that start with a ‘1’,” she said.
“Within Westpac alone, there’s a 3.90 percentage point difference between the bank’s highest and lowest savings rates. On $20,000 that’s a difference of around $800 in just one year.
“While the lowest rates typically come with no terms and conditions, the highest ongoing rates are loaded with fine print.
“For example, ING is now offering all adults ongoing rates of up to 5.25 per cent, however, to qualify for this rate customers have to deposit $1,000 or more into a linked transaction account, make at least 5 purchases on that account, and increase their savings balance every single month to qualify.
“Take your nest egg shopping but before you do, have a think about what terms and conditions you’ll be able to meet, and pick an account that suits your finances,” she said.
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Product database updated 05 May, 2024
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