Banks slash top savings rates, despite no RBA movement
The Aussie banks who offer the top savings accounts on the market have now slashed their interest rates.
ME Bank and Bank of Queensland (BOQ) have both joined ANZ in slicing their high-interest savings accounts by 0.10 per cent.
The savings cuts come despite the Reserve Bank (RBA) holding interest rates at its past four meetings. The cash rate remains at a high of 4.10 per cent, following the board’s aggressive run of interest rate hikes to rein in inflation.
ME Bank launched its HomeME account in July at 5.65 per cent, but has now dropped the rate to 5.55 per cent. Despite the cut, it is still the highest ongoing savings rate available.
BOQ, the parent company of ME Bank, has also cut its high-interest-rate savings accounts by 0.10 per cent.
The bank’s popular Future Saver account for those aged 14 to 35 will drop from 5.50 to 5.40 per cent, while its Smart Saver will drop from 5.10 to 5.00 per cent.
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Bucking the trend, the bank actually increased the interest rate on its Simple Saver account by 0.10 per cent to 4.60 per cent.
Puzzling move
RateCity research director Sally Tindall said BOQ and ME Bank customers seeking competitive rates would be “puzzled” by the news.
“The small cuts we’re seeing in the savings space could be a way for the banks to inject a buffer into their rates in case the RBA does hike,” Tindall said.
“Savers should keep an eye on their rate, regardless of what the next couple of RBA meetings produce. Banks can and do move interest rates - both up and down - without the RBA moving an inch.”
Where to find the top savings rates
These are the highest ongoing savings rates. They often have conditions attached to get the maximum rate, including minimum monthly deposits.
| Account | Max ongoing rate | Max balance |
| Me Bank HomeME | 5.55% | $100,000 |
| ING Savings Maximiser | 5.50% | $100,000 |
| MOVE Bank Growth Saver | 5.50% | $25,000 |
| Teachers Mutual Bank Target Saver | 5.50% | $5,000,000 |
| BOQ Future Saver (ages 14-35) | 5.40% | $50,000 |
| Great Southern Bank Goal Saver (ages 18 -24) | 5.35% | $50,000 |
| Virgin Money Boost Saver | 5.35% | $250,000 |
Source: RateCity
If you don’t want to jump through any hoops, these are the highest ongoing savings rates with no conditions to get the maximum rate.
| Account | Rate | Max balance |
| Unity Bank MoneyMAX | 5.00% | No limit |
| ANZ Plus | 4.65% | $250,000 |
| BOQ Simple Saver | 4.60% | $5 million |
| Macquarie Bank Savings Account | 4.50% | $1 million |
Source: RateCity