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Westpac bows to pressure, announcing savings rates hikes
Westpac has this afternoon announced it will be increasing the rates on select savings accounts, effective 20 June, following last week’s RBA rate hike announcement.
The bank had previously remained silent on what it intended to do for its customers with a savings account.
In today’s announcement, Westpac has said it will increase its Life account with the full 0.25% points. However existing eSaver customers have missed yet again, with their rate remaining at 1.10%.
The bank has also increased its Spend&Save rate, for Australians aged 18 – 29, to a healthy 5.20%, provided customers meet certain terms and conditions.
Westpac savings rate changes – effective Tuesday 20 June
| Old max rate | New max rate | Change | |
| Life | 4.50% | 4.75% | +0.25% |
| eSaver | 4.50% for 5 mths then 1.10% | 4.65% for 5 mths then 1.10% | +0.15% to intro rate, no change to ongoing |
| Spend&Save (ages 18-29) | 5.00% | 5.20% | +0.20% |
| Bump (under 18s) | 4.50% | Under review |
Source: RateCity.com.au. Note: terms and conditions apply for some maximum rates.
Big four bank savings account rates post RBA
| BONUS SAVERS | ||
| Account | Max rate | Conditions for max rate |
| CBA GoalSaver | 4.65% | Grow balance each mth |
| Westpac Life | 4.75% | Grow balance each mth |
| NAB Reward Saver | 4.75% | 1 deposit, no withdraw / mth |
| ANZ Progress Saver | 4.25% | $10+ dep, no withdraw/mth |
| ONLINE SAVERS | ||
| Account | Rate | Conditions for max rate |
| CBA NetBank Saver | 4.75% for 5 mths then 2.20% | No conditions |
| Westpac eSaver | 4.65% for 5 mths then 1.10% | No conditions |
| NAB iSaver | 4.75% for 4 mths then 2.00% | No conditions |
| ANZ Online Saver | 3.40% for 3 mths then 1.60% | No conditions |
| OTHER | ||
| Account | Max rate | Conditions for max rate |
| ANZ Plus Save (15 yrs+) | 4.65% | None |
| Westpac Spend&Save (18-29 yrs) | 5.20% | Grow bal each mth. 5+ purchases on linked account. |
Source: RateCity.com.au. Note: Westpac rates effective 20 June.
RateCity.com.au research director, Sally Tindall, said: “The big four banks have now all declared their hands, but it’s a mixed bag depending on who you bank with, which account you have, and your time as a customer.”
”Westpac has the highest and lowest ongoing savings rates out of the big four banks, serving up a competitive 5.20 per cent for young adults yet a miserable 1.10 per cent for existing eSaver customers,” she said.
“If you’re a longsuffering eSaver customer, know you are getting fleeced.
“A rate of 1.10 per cent is not something you should cop on the chin. Spend half an hour looking at better options and an extra ten minutes opening a new account. You should start seeing the benefits of a higher savings rate straight away,” she said.
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Product database updated 08 May, 2024
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