Yahoo Finance ANZ, NAB, Westpac fail to lift savings rates - but these banks have
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.
Also read: Westpac passes on rate hike in full but leaves savers in limbo
Also read: RBA hikes rates again: Prepare to pay more
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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