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Westpac and NAB finally lift savings rates post June RBA hike

Westpac and NAB finally lift savings rates post June RBA hike

Westpac has today hiked rates on a handful of its savings accounts, following the historic double rate hike from the RBA at the beginning of this month.

After 17 days of silence on what the bank would do for its savers, Westpac has now hiked rates on three popular accounts.

Westpac’s Life account has gone up by 0.35 percentage points to a maximum rate of 0.85 per cent. Young adults with this account will see their rate increase even further, with the bank opting to pass on the full 0.50 percentage points, taking the maximum rate for people aged 18 – 29 to a competitive 2.50 per cent.

Westpac has also hiked the introductory rate on its eSaver account, however, this hike will only benefit new customers.

Westpac’s savings rate changes post June RBA hike

Old max rateNew max rateChange
Life (all adults)

0.50%

0.85%

+0.35%

Life (ages 18-29)

2.00%

2.50%

+0.50%

eSaver

0.50% for 5 mths then 0.05%

0.75% for 5 mths then 0.05%

+0.25%

Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts.

NAB yesterday hiked the rate on its iSaver account by 0.25 percentage points. The introductory rate on this account is now 0.80 per cent for four months, while the ongoing rate is 0.30 per cent.

NAB savings rate changes post June RBA hike

Old max rateNew max rateChange
Reward Saver

0.50%

0.50%

0.00%

iSaver

0.55% for 4 mths then 0.05%

0.80% for 4 mths then 0.30%

+0.25%

Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts.

These rate hikes come a week after Australia’s biggest bank, CBA, passed on the double hike, in full, to its GoalSaver and Youthsaver customers.

ANZ has still not raised rates on any of its popular savings accounts following the June hike, however, the bank has recently launched “ANZ Plus” – a new bank account that includes a savings account with a maximum rate of 1.50 per cent, with no extra terms and conditions to qualify for this rate.

RateCity.com.au database analysis following June RBA rate hike:

  • 36% of banks have, to date, increased the rate on at least one savings account (58% of banks increased rates following the May hike).
  • More than a dozen banks have passed on the full 0.50% hike (or more) to at least one savings account including CBA, ING, St George, Bendigo and Suncorp.
  • 2.10% is the highest ongoing savings rate for all adults.
  • 3.00% is the highest ongoing savings rate for young adults.

RateCity.com.au research director, Sally Tindall, said: “Westpac and NAB have finally responded to the historic June cash rate hike, however, not all of their savings customers will see a rate increase.”

“While it’s disappointing these banks have only passed on partial hikes to select savers, something is better than nothing,” she said.

“So far, just 36 per cent of banks on our database have lifted at least one savings account rate following the RBA’s double hike this month. That’s a disheartening result. While a handful of providers have passed on full hikes, as a whole, our banks can, and should, do better.

“If your bank hasn’t passed on the rate hike in full, call them up and ask why?

“ANZ savers, in particular, have not seen their rates move substantially following the May and June hikes, yet the bank is offering a competitive 1.50 per cent to customers opening up a new ANZ Plus account. This is a classic case where complacent savers get the raw end of the deal.

“Inflation is already above 5 per cent and set to rise to 7 per cent by the end of the year, yet the vast majority of savings rates are still below 1 per cent.

“While savers aren’t likely to find an account that will keep up with inflation, if they can switch to a more competitive rate, at least the carnage will be limited.

“Macquarie Bank and ANZ are now offering ongoing deposit rates of 1.50 per cent with no strings attached, while young savers can get up to 3.00 per cent if they can jump through all of the qualifying hoops,” she said.

Big four banks – BONUS SAVERS

BankAccountMax rate
CBAGoalSaver

0.75%

Westpac Life

0.85%

NABReward Saver

0.50%

ANZProgress Saver

0.40%

Source: RateCity.com.au. Conditions for max rate apply.

Big four banks – ONLINE SAVERS

BankAccountMax intro rateOngoing rate
CBANetBank Saver

0.50% for 5 mths

0.30%

Westpac eSaver

0.75% for 5 mths

0.05%

NABiSaver

0.80% for 4 mths

0.30%

ANZOnline Saver

0.15% for 3 mths

0.05%

ANZ PlusSave

N/A

1.50%

Source: RateCity.com.au.

Highest ongoing savings rates on RateCity.com.au

Bonus saver accounts: Max rates
Market leadersBalance for max rate
ING Savings Maximiser

2.10%

$100,000

BOQ Smart Saver Account

2.00%

$250,000

Virgin Money Boost Saver

2.00%

$250,000

Young adults market leaders
BOQ Future Saver (14-35)

3.00% up to $50K

$50,000

Westpac Spend&Save (18-29)

2.50% up to $30K

$30,000

Police Bank U30 Super Charge Account

2.00% up to $10K

$10,000

Source: RateCity.com.au. Monthly conditions apply for max rate.

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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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