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Savings rates rise on back of RBA hike, but many still trail well behind the cash rate

Alex Ritchie avatar
Alex Ritchie
- 4 min read
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

BOQ Future Saver (ages 14-35)

5.30%

$50,000

ING Savings Maximiser

5.25%

$100,000

Virgin Money Boost Saver

5.10%

$250,000

MOVE Bank Growth Saver

5.00%*

$25,000

Police Bank U30 Super Charge (ages 18-29)

5.00%*

$10,000

Westpac Spend&Save (ages 18-29)

5.00%

$30,000

Great Southern Bank Goal Saver (ages 18-24)

4.85%*

$50,000

AMP Bank Saver

4.80%*

$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.

Compare savings accounts

Product database updated 16 Apr, 2024

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

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