Westpac the first big bank to announce hikes for savers
05 Feb 2026
Westpac has today announced it will increase its savings rates by up to 0.25, effective 13 February – four days before its home loan rate changes kick in.
As a result, the bank’s new highest ongoing savings rate will be 5.25%, however, this rate is only available for Australians aged 18 – 34.
Westpac Life, which is available to all adults, will rise by 0.25 to a maximum ongoing rate of 4.50%. However, the base rate on this account has not increased, which means savers who don’t meet the monthly conditions will continue to get just 0.10%.
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| Westpac savings rate changes – effective 13 February | ||
|---|---|---|
| New rate | Change | |
| Life (all adults) | 4.50% if conditions met, 0.10% if not | +0.25% to bonus rate, no change to base |
| Life (18-34 yrs) | 5.25% if all conditions met, 0.10% if not | +0.25% to bonus rate, no change to base |
| eSaver | 4.70% for first 5 mths, then 1.00% ongoing | +0.25% to intro rate, no change to base |
Source: Canstar. Conditions and balance caps apply for maximum rate on select accounts.
Westpac is not the only bank to have announced its post-RBA savings rates.
ING announced yesterday it will hike the majority of its savings rates by at least 0.25, taking the maximum rate on its popular Savings Maximiser to 5.00%. This is set to be the highest ongoing savings rate for all adults when it takes effect in five days. However, the base rate has not budged from 0.01%.
Macquarie Bank – one of the first out of the blocks on Tuesday night – is passing on the hike in full to its savings and transaction accounts. Its savings account – which will increase to 4.50% – is on track to be the highest ‘no-strings attached’ ongoing savings rate.
Banks’ savings announcements and their new maximum ongoing rates:
- Westpac: 5.25% (ages 18 – 34), from 13 February
- ING: 5.00% from 10 February
- Macquarie: 4.50% from 20 February
- Up Bank: 4.85% from 11 February
- ubank: 4.60% from 10 February
- Teachers Mutual Group: 4.75% (account for under 30s) from 17 February
- Bank of Sydney: 4.25% from 10 February
- AMP: 4.60% from 9 February (increase of 0.35)
- Beyond Bank: 4.14% from 17 February.
How did savers fare during the last rate-hiking cycle?
While the majority of banks are yet to announce their new savings rates, our analysis shows across the last round of rate hikes across 2022 and 2023, many were selective on which rates saw a boost and which missed out.
On average, the total rate on bonus saver accounts increased by 4.05 percentage points, while the base rate – the rate earned if savers don’t meet their bonus conditions – rose by an average of just 0.42 percentage points.
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| Average bonus saver rates: May 2022 – December 2023 | |||
|---|---|---|---|
| 1 May 22 | 31 Dec 23 | Change %-pts | |
| Maximum rate | 0.58% | 4.63% | 4.05 |
| Base (if conditions not met) | 0.05% | 0.47% | 0.42 |
| RBA cash rate | 0.10% | 4.35% | 4.25 |
Source: Canstar. Savings account interest rates based on a deposit balance of $10,000. Bonus accounts: Includes accounts that pay a bonus rate when conditions are met each month. Total rate includes the base rate plus the conditional bonus rate.
Westpac is leading the way for young savers
Canstar data insights director, Sally Tindall, says, “Westpac might have taken two days to decide, but it’s great to see it’s broadly done the right thing for its savers.”
“The big drawback from today’s announcement is that the bank won’t be passing this increase on to its base savings rates, which means customers will have to make sure they meet the bank’s terms and conditions to qualify for the maximum rate.
“Westpac is leading the way for young adults, confirming that it will continue as the market leader for savers aged 18 to 34, with an ongoing rate of 5.25 per cent. Of course, these young adults will need to school up on the fine print if they want this rate each month, with no move to the base rates, which start from just 0.10 per cent.
“For those unlucky enough not to be in this age category, it’s not all bad news. ING has confirmed it’s increasing its popular Savings Maximiser by 0.25 to an ongoing rate of 5.00 per cent, but again it’s a lesson in fine print.
“ING’s new rate of 5.00 per cent is an extremely competitive offer in today’s market, but only if customers meet the terms and conditions to qualify. If, in any given month, they don’t, the rate plummets to just 0.01 per cent – a rate that ING has said won’t be moving with this hike.
“Macquarie has also announced it’s passing on the hike in full to its savings and transaction accounts. This announcement puts the bank on track to offer the highest ongoing savings rate that doesn’t come with monthly conditions to qualify.
“The spotlight now turns to CBA, NAB and ANZ, whose customers are still waiting to see whether their savings will get the boost the RBA hike should deliver.
“Across the last rate-hiking cycle, bonus rates broadly kept pace with the RBA, but base rates barely budged, leaving anyone who slipped up regularly falling well behind.
“If banks are serious about supporting savers in a high-rate environment, it’s not just the maximum rates that matter, it’s what happens when real life gets in the way and those conditions aren’t met.
“With more banks now pushing rates towards and above 5 per cent, this is a timely reminder for savers to check the fine print, track their balances and make sure their money is working as hard as possible.”
This article was reviewed by our Consumer Editor Meagan Lawrence before it was updated, as part of our fact-checking process.
