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ANZ, NAB, Westpac fail to lift savings rates - but these banks have

·Personal Finance Editor
·3-min read
Logos of the big four banks and Australian money to signify different bank savings rates.
Three of the Big Four banks have failed to up their savings rates. (Source: Getty)

While the Reserve Bank’s (RBA) rate rises mean mortgage holders pay more, they can be a major win for savers, but only if banks choose to pass on the hikes to savings accounts.

Sadly, despite taking in more money from borrowers, three of the Big Four banks (ANZ, NAB and Westpac) have failed to lift savings rates.

Commonwealth Bank (CBA), however, is passing on the full 0.50 per cent hike to its GoalSaver and Youthsaver accounts, effective June 17.

But, it’s not all bad news - if you turn your attention away from the majors you can find the other banks are upping the competition.

Macquarie and ING have announced major increases to the interest rates on their transaction and savings accounts, respectively.

Macquarie Bank has announced it will be increasing the interest rate on its transaction account from 0.20 per cent to a market-leading 1.50 per cent on balances up to $250,000, effective June 17.

For contrast, the highest interest rate from a Big Four bank on their main transaction account is just 0.02 per cent - from ANZ - on balances over $100,000.

ING has increased the interest rate on its Savings Maximiser account by 0.75 percentage points to 2.10 per cent, on balances up to $100,000, effective June 15.

This is more than the RBA cash rate hike of 0.50 percentage points, however, the bank did not pass on the last hike in May.

When it takes effect, it is likely to be the highest ongoing savings rate for all adults.

Data from RateCity.com.au found 35 banks offered interest rates on their transaction accounts.

CBA and Westpac do not offer interest on their main banking accounts. NAB offers 0.01 per cent, and ANZ up to 0.02 per cent.

RateCity research director Sally Tindall said Macquarie and ING had both upped the ante following Tuesday’s landmark double rate hike.

“Finally, we have some proof that competition in the savings sector isn’t dead and buried,” Tindall said.

"ING and Macquarie have reset the battlefield for savings rates in what is ultimately a win for savers.”

Tindall said CBA, Macquarie and ING making significant increases on some of their most popular accounts would put pressure on the other major banks to match them.

“Customers sick of earning peanuts on their hard-earned cash would do well to shop around now the competition in the savings market is finally picking up,” she said.

Here’s a look at some of the most competitive savings rates.

Highest ongoing savings rates for adults

 

Bank

Maximum rate

Balance for max rate

ING Savings Maximiser

2.10%

$100,000

Virgin Money Boost Saver

1.60%

$250,000

AMP Bank Saver Account

1.35%

$250,000

Ubank Save Account

1.35%

$250,000

 

Highest savings rates for young adults

 

Bank

Ages

Maximum rate

Balance for max rate

BOQ Future Saver

14 – 35

3.00%

$50,000

Westpac Life

18 – 29

2.00%

$30,000

Police Bank Super Charge

18 – 29

2.00%

$10,000

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