Yahoo Finance Savings boost: New highest rate hits 5.65%
The move may force other banks to up their saving account rates.
Savings rates are finally higher than inflation, with the new highest savings rate now hitting 5.65 per cent.
ME Bank launched its HomeME savings account today, aimed at first home buyers, offering the top ongoing savings rate on the market.
At 5.65 per cent, this is the only savings account that is currently higher than the monthly inflation rate of 5.6 per cent.
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RateCity research director Sally Tindall said the move could force market leaders to reconsider their position on rates.
“When it comes to savings rates, ING, in particular, isn’t used to playing second fiddle,” Tindall said.
“This account also puts extra pressure on the Big Four banks to keep their savings rates competitive. If enough savers start switching to market-leading accounts, then our largest banks will be forced to follow.”
The lowest ongoing savings rate from the Big Four banks is just 1.10 per cent, while the highest is 4.75 per cent.
What are the savings conditions?
The HomeME savings account is available for balances up to $100,000 for Aussie residents aged 14 and over.
To be eligible for the maximum rate, customers need to deposit $2,000 into a linked SpendME transaction account each month and grow the balance of their savings account (excluding interest).
“Unsurprisingly, customers opening up this new account will have to jump through the usual hoops to qualify for the maximum interest rate each month, but anyone focused on saving up for something big, such as a car or their first home, are likely to make sure they clear these hurdles,” Tindall said.
Top savings rates
Account | Max ongoing rate | Base rate | Max balance for max rate |
ME Bank HomeME | 5.65% | 0.55% | $100,000 |
ING Savings Maximiser | 5.50% | 0.55% | $100,000 |
BOQ Future Saver (ages 14-35) | 5.50% | 0.05% | $50,000 |
MOVE Bank Growth Saver | 5.50% | 0.10% | $25,000 |
Virgin Money Boost Saver | 5.35% | 0.05% | $250,000 |
Great Southern Bank Goal Saver (ages 18 to 24) | 5.35% | 0.50% | $250,000 |
Source: RateCity.com.au. Monthly terms and conditions apply for max ongoing rate.
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