Some savers with Australia's biggest bank will now see higher interest rates, with the Commonwealth Bank of Australia (CBA) deciding to pass on the full 0.25 per cent rate hike to its NetBank Saver customers.
According to RateCity, the two million CBA customers with NetBank Saver accounts would see a lift to the ongoing rate to 0.30 per cent from 0.05 per cent.
New customers would get a higher rate of 0.50 per cent for five months before it dropped down to 0.30 per cent.
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“While CBA took over a week to confirm the details of its NetBank Saver hike, it’s great to see it has been added to the ongoing rate,” RateCity research director Sally Tindall said.
The major banks started passing higher interest rates on to savings customers after the Reserve Bank of Australia lifted the cash rate for the first time in 12 years earlier this month.
The RBA lifted the cash rate 0.25 percentage points to 0.35 per cent in response to rising inflation.
The major banks also wasted no time passing on higher interest rates to their variable-rate-mortgage customers, with all four increasing their variable mortgage rates by 0.25 per cent.
While Tindall welcomed the news that millions of savers were finally seeing their interest rates go up, she noted that the increases had not been applied across the board.
“Some savers will be scratching their heads, wondering why they missed out,” she said.
Because Australians already have a lot in savings - a record $1.26 trillion - raising savings rates will be a costly exercise for the banks.
“Banks are likely to continue to skimp on savings rate hikes as the cash rate keeps rising,” Tindall said.
She recommended shopping around to find the best rate.
“Right now, 1.35 per cent is the highest ongoing rate for all adults, while young Australians can get up to 2 per cent,” she said.