The RBA has handed down its 12th cash rate hike, taking the rate to 4.10%, the highest cash rate in around 11 years.
While mortgage holders have felt the brunt of the rate rises, savers have reaped the rewards with a large number of banks now offering savings rates above 5% p.a.
June highlights
- ubank will increase its savings account rate to 5% p.a.
- Bendigo Bank will increase its Reward Saver account rate to 5.25% p.a.
- ING will increase its Savings Maximiser account to 5.50% p.a.
- BOQ will increase its Future Saver account to 5.50% p.a.
The market leaders
ING to increase savings rates
ING increased its Savings Maximiser account by the full 25 basis points to a maximum rate of 5.50% p.a.
This applies to the bonus rate while the base rate of 0.55% p.a. remains unchanged.
To attain the bonus savers must: Have a max balance of $100k; deposit $1000 per month; grow the balance; and make 5 settled card transactions.
This means ING now shares top spot in the savings account race (with BOQ) according to Savings.com.au market research.
The Savings Accelerator rate was also boosted by 35 basis points to a maximum rate of 4.35% p.a. for those with larger balances.
These increases will apply from 14 June.
BOQ to increase savings rates
Bank of Queensland (BOQ) will share top spot with ING when its savings account rate changes come into effect from 16 June 2023, offering a Future Saver account rate of 5.50% p.a. The bank has decided against lifting rates by the full 25 basis points (which would have put it in front of ING by 5 basis points), opting for a 20 basis point lift instead.
To receive this rate, BOQ savers must deposit $1,000 and make five settled card transactions on their linked Everyday Account every month. The Future Saver is for balances up to $50,000 and for those aged 14-35.
BOQ will also increase Smart Saver (ages 36+) accounts by 0.25% p.a. to 5.10% p.a. for balances between $1 and $250,000.
Bendigo Bank to increase savings rates
From 16 June, Bendigo Bank will increase rates on its Easy Saver deposit products by 0.50% p.a.
Bendigo's Reward Saver deposit account will also increase by 0.25% p.a. to a total of 5.25% p.a. To receive this rate, customers are required to hold an eligible transaction account with Bendigo and ensure the end of month balance is greater than the start of the month.
Macquarie Bank to increase savings rates
Effective 9 June, Macquarie Bank will increase its savings account welcome rate to 5.30% p.a. for new customers for the first four months on balances up to $250,000.
The ongoing interest rate customers earn on both their savings and everyday transaction accounts will increase by 0.25% to 4.50% p.a., on balances up to $250,000. These changes will come into effect on 23 June 2023.
Macquarie's 12-month term deposit interest rate of 4.80% p.a. comes into effect 9 June 2023.
ANZ, CommBank, Westpac, NAB
Westpac
Westpac said its savings rates are 'under review', but launched a special offer term deposit rate of 4.50% p.a.
This is for terms of 12-23 months and is effective 9 June.
CommBank
Australia's largest bank has announced its intent to increase savings account rates following the RBA's June decision.
CommBank's GoalSaver with bonus interest rate will increase by 0.25% p.a. to 4.65% p.a., effective 16 June 2023.
To achieve CommBank's new GoalSaver rate of 4.65% p.a. customers are required to make a deposit each calendar month into the account, and have a higher account balance at the end of the month compared to the account balance at the start of the month (excluding interest and bank-initiated transactions).
CommBank's Youthsaver account for those aged under the age of 18 will also increase by 0.25% p.a. to 4.75% p.a., effective 16 June 2023.
Further, the Netbank Saver standard variable interest rate will increase to 2.20% p.a. The 5-month introductory variable rate will increase by 25 basis points to 4.75% p.a.
ANZ
ANZ said its deposit and savings rates are 'under review', but launched a new 12-month Advance Notice term deposit rate of 4.60% p.a.
The new rate comes into effect 9 June 2023.
NAB
NAB has increased its Reward Saver account to offer a rate of 4.75% p.a.
NAB's Reward Saver rate of 4.75% p.a. is available for balances north of $1 million, with customers required to make no withdrawals and make at least one deposit on or before the second last banking day of the month.
NAB's 12-month term deposit will increase by 0.40% to 4.60% p.a.
The new rates will come into effect from 16 June 2023.
The best of the rest
ubank to increase savings rates
Another month of being the first to move savings rates following an RBA cash rate decision, ubank will increase its 'Save' account rate by 0.25% to a total of 5% p.a. from 1 July 2023.
To receive ubank's rate of 5% p.a. customers are required to have a ubank Spend account and deposit $200 per month (excluding internal transfers) into any Spend and Save accounts.
Bankwest increases savings rates
Bankwest will increase select savings products by 25 basis points, including the Easy Saver intro rate to 4.85% p.a.
The maximum balance is $250,000 and there is no deposit criteria, however is offered as an intro rate for four months.
Suncorp increases savings rates
Suncorp will increase its Growth Saver account by 25 basis points to a maximum of 4.85% p.a.
To attain this rate savers must grow their balance by $200 or more, and make no more than one withdrawal.
This applies from 15 June.
"Which banks are increasing savings rates following the RBA’s June decision?" was originally published on Savings.com.au and was republished with permission.