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Savings boost: Bank of Queensland hikes rates ahead of RBA decision

Bank of Queensland has hiked its savings rates just days ahead of the Reserve Bank’s meeting on Tuesday.

Tamika Seeto
·Finance Reporter
Updated ·2-min read
BOQ savings rates
Savings rates are now over 5 per cent, following a hike from Bank of Queensland. (Source: Getty)

Savings accounts have broken through the 5 per cent barrier, following a hike from Bank of Queensland (BOQ) today.

The Brisbane-based bank increased its Future Saver rate by 0.25 per cent to 5.15 per cent, making it the new highest rate on the market.

This is the second increase to the Future Saver account, which is for those aged 14 to 35, in less than two weeks. It comes just days ahead of the Reserve Bank of Australia’s (RBA) March meeting, where it is widely tipped to hike rates by a further 0.25 per cent.

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BOQ has also increased its Smart Saver account, for adults over 36, by 0.35 per cent to 4.60 per cent.

RateCity research director Sally Tindall said the move wasn’t something you saw everyday in the savings sector.

“This move by Bank of Queensland puts pressure on the market leaders to pass on whatever the RBA serves up on Tuesday,” Tindall said.

RateCity’s research found there were 44 banks whose highest savings rates for adults were still below the current cash rate of 3.35 per cent.

“If you’ve got cash stashed in the bank that’s earning less than the cash rate, rattle the cage by switching,” Tindall said.

“The upcoming ACCC (Australian Competition and Consumer Commission) inquiry has put the banks on notice, but the one thing that’s really going to get their attention is if customers start jumping ship in droves.”

Best savings rates

To access BOQ’s 5.15 per cent Future Saver account rate, customers need to deposit $1,000 each month and make five transactions with a linked Everyday Account to get the maximum rate.

For Aussies over 18, ING’s Savings Maximiser offers the best rate at 4.80 per cent. Customers need to deposit $1,000 each month, make five card purchases and grow their balance each month to get the bonus rate.

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