Which banks have hiked term deposits and savings accounts in February 2023?

The ninth consecutive increase to Australia’s national cash rate was revealed last week, making this the fastest hiking cycle in decades. The Reserve Bank of Australia (RBA) has indicated that more rate hikes may be necessary in 2023 to help bring down Australia’s high inflation. This may mean more pain for mortgage holders, savers could potentially benefit from rising rates.

Of course, not all banks and Authorised Deposit-taking Institutions (ADIs) have announced that they will be raising their interest rates on deposits, or that these rate rises will match the hikes on loan products. The Federal Government is reportedly encouraging the Australian Competition and Consumer Commission (ACCC) to investigate competition in the savings sector so Australian savers aren’t being left holding the short end of the stick.

At the time of writing, relatively few banks and ADIs have so far announced increases to interest rates on their term deposit products: 

• ING has announced it will increase interest rates across a range of term deposits, including its 1-year Term Deposit to 4.15% for customers opening or rolling over from the effective date of 14 February 2023.
• RACQ Bank has announced that it will increase interest rates on term deposits by up to 0.25% p.a. effective 21 February 2023.
• Bank First has announced that it will increase the interest rates on several term deposit accounts and also introduce a 3-month Term Deposit promotional rate at 3.50% p.a. effective 10 February 2023

Other banks and ADIs have extended the availability of selected term deposit offers, chose to raise term deposit rates prior to the RBA announcement, or referred to their term deposit rates as “under review”.

Keep in mind that term deposit customers may need to wait for their existing deposit to reach maturity and roll over before they can consider switching to a higher rate. Comparing term deposits can help you work out which options may offer you the most value.

As for savings accounts, at the time of writing the following ADIs have announced increases to their savings rates following the RBA hike: 

Some savings accounts have specific eligibility criteria, such as age restrictions or maximum deposit amounts, which may make them better suited to some savers than others. Remember to compare savings accounts before you consider jumping ship, and keep an eye on RateCity’s Rate Tracker hub for more information on which banks are raising rate for borrowers and savers.

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