The highest ongoing savings rate could break the 6% barrier if banks pass on last Tuesday’s 0.25 percentage point RBA hike in full to savers.
However, a week after the RBA announced the cash rate change, it remains a very big ‘if’.
A total of 25 banks on the Canstar database have announced what’s happening to some or all of their savings rates, including the big four banks.
Currently, the highest saving rate in the market, from banks that have announced, is Westpac’s Spend&Save which will rise to 5.95% from this Friday, a rate that’s reserved for those aged 18 to 40.
The hike to this saving account falls agonisingly short of the 6% mark, as Westpac opted to pass 0.20 on to this rate.
Banks’ savings announcements and their new maximum ongoing rate:
- CBA: 5.25% from 9 October
- Westpac: 5.95% (ages 18-40) from 9 October
- NAB: 5.25% from 9 October
- ANZ: 5.35% from 9 October
- Macquarie: 5.25% from 15 October
- ING: 5.75% from 9 October
- Ubank: 5.35% from 6 October
- AMP: 5.50% from 6 October
- Bank First: 5.65% (ages 15 to 35) from 16 October
- Judo Bank: 5.60% from 7 October
- Qudos Bank: 5.35% from 15 October
- Firefighters Mutual: 5.50% from 1 October
- Australian Mutual: 5.50% from 1 October
- Teachers Mutual: 5.50% from 1 October
- UniBank: 5.50% from 1 October
- Health Professionals: 5.50% from 1 October
- BankVic: 5.30% from 1 October
- Beyond Bank: 4.90% from 13 October
- Qbank: 5.20% from 1 October
- Hume Bank: 5.30% from 1 October
- Up: 5.60% from 8 October
- Bank of Sydney: 5.25% from 2 October
- People First Bank: 5.55% from 1 October
- MyState Bank: 5.25% from 8 October
- The Mutual Bank: 4.25% from 1 November
Big four banks still picking and choosing which rates get a boost and which miss out
The big four banks have now made full or partial announcements as to what is happening to their savings rates following the RBA September hike.
Unsurprisingly, when it comes to the big banks’ bonus saver rates, where customers can get a higher rate each month but only if they meet certain terms and conditions, the hike will be applied to the bonus portion.
This means if someone fails to meet the monthly requirement in any given month, they miss out on the rate hike for that month.
Big four bank bonus saver account rates: from 9 October | ||||
|---|---|---|---|---|
Bank | Account | Max rate | Base rate | Change |
CBA | Goal Saver | 5.25% | 0.10% | +0.25 to max rate 0.00 to base |
Westpac | Life | 5.25% | 0.10% | +0.25 to max rate 0.00 to base |
Westpac | Life (18 - 40) | 5.95% | 0.10% | +0.20 to max rate 0.00 to base |
NAB | Reward Saver | 5.25% | 0.01% | +0.25 to max rate 0.00 to base |
ANZ | Progress Saver | Under review | ||
ANZ Plus | Growth Saver | 5.35% | 0.10% | +0.25 to max rate 0.00 to base |
Source: Canstar. Note: monthly conditions apply for max rate. Other conditions such as balance caps also apply.
How did savers fare during the last rate hike in May?
Banks applying an RBA hike to the bonus portion of a savings rate, rather than the base rate is unfortunately nothing new.
Canstar analysis shows following the May RBA rate hike, on average, the total rate on bonus saver accounts increased by 0.28 percentage points, that’s 0.03 more than the RBA prescribed.
However the base rate on these accounts, which is the rate customers get for the month if they don’t meet their bonus conditions, rose by an average of just 0.01 percentage points.
Average change in bonus saver rates after the May cash rate hike | |||
|---|---|---|---|
Pre-May decision | Post-May decision | Average change %-pts | |
Maximum ongoing rate | 4.49% | 4.77% | +0.28 |
Base rate (if conditions not met) | 0.19% | 0.20% | +0.01 |
RBA cash rate | 4.10% | 4.35% | +0.25 |
Source: Canstar. Savings account interest rates are taken on 1 May and 28 September 2026 for a deposit amount 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.
Australians continue to put record savings in the banks
Australians added another $5.7 billion to their deposits in May as the country remained focused on building up a savings buffer in term deposits, savings accounts, mortgage offsets and transaction accounts.
The latest APRA statistics show household deposits among authorised deposit-taking institutions (ADIs) reached a record $1.77 trillion in August, up $120 billion over the past year.
APRA total deposits by households | ||
|---|---|---|
Amount | Monthly change | Year-on-year change |
$1.77 trillion Record high | +$5.7 billion +0.3% | +$120.1 billion +7% |
Source: APRA Monthly Authorised Deposit-taking Institution Statistics for August 2026, released 30 September 2026, prepared by Canstar. Deposits include term deposits, transaction accounts, mortgage offsets and savings accounts on the books of ADIs.
Challenger bank, Macquarie, recorded the highest growth among the big five banks in August, in both dollar terms and percentage terms, increasing its deposits by $2.3 billion or 2.0% in just one month.
Over the year, Macquarie’s household deposit book increased by $29.8 billion, or 33.8%. Despite the impressive growth, the bank holds a smaller share of deposits compared to the big four. The records show Macquarie is sitting at a market share of 7%, while CBA’s share is over a quarter of all household deposits at 27%.
Household deposits: APRA | ||||
|---|---|---|---|---|
Bank | Amount | Monthly change | Year-on-year change | Market share |
CBA | $469.5 billion | +$1.8 billion +0.4% | +$32.6 billion +7.5% | 27% |
Westpac | $364.2 billion | +$869 million +0.2% | +$22.9 billion +6.7% | 21% |
NAB | $244.1 billion | +$1.1 billion +0.5% | +$14.5 billion +6.3% | 14% |
ANZ | $199.0 billion | +$597 million +0.3% | +$8.3 billion +4.4% | 11% |
Macquarie | $118.2 billion | +$2.3 billion +2.0% | $29.8 billion +33.8% | 7% |
Source: APRA Monthly Authorised Deposit-taking Institution Statistics for August 2026, released 30 September 2026, prepared by Canstar. Deposits include term deposits, transaction accounts, mortgage offsets and savings accounts on the books of ADIs.
Take this opportunity to check your savings rate fits your finances
Canstar’s Data Insights Director, Sally Tindall, says, “An ongoing savings rate starting with a six is now in reach, but we’re still holding our breath to see whether any bank is willing to cross this line following the latest round of rate hikes.”
“Westpac will stop agonisingly short of the 6 per cent mark when it lifts its highest ongoing savings rate to 5.95 per cent this Friday, leaving the door open for its competitors to claim the 6 per cent crown.
“It’s frustrating but by no means surprising to see the big four come out and announce that only the bonus portion of their conditional saver rates will rise, when the hike is implemented at the end of this week, alongside their home loan increases.
“This means bonus saver customers who don’t clear their bank’s monthly conditions, won’t be getting a rate hike at all, at least for the months they fall short.
“The higher rates climb, the more selective some banks have become about which accounts get the full hike and which miss out. After the last three cash rate rises, what we saw was that most bonus rates got a decent boost, while most base rates didn’t budge an inch, with some sitting literally on the floor at rates of 0.00 or 0.01 per cent.
“For example, Canstar research shows that after the May rate hike, banks lifted their bonus saver rates by an average of 0.28 percentage points. That’s impressive to say the least. Yet the average boost to base rates was just 0.01. That would be laughable if it wasn’t people’s hard earned cash we were talking about.
“If you’ve got money in a savings account, it’s important to get across what your bank has done and not just to the headline rate.
“Use this as an opportunity to check you’ve got a savings rate that fits with your finances.
“Macquarie Bank’s growth continues to defy the record books, with the bank increasing its deposits from households by one third in the space of just one year. Yet, the fact it still has just 7 per cent of market share, illustrates just how big the big banks really are.”
