The market leaders in savings rates, ING and Macquarie Bank, have both confirmed they will pass on Tuesday's 0.25 cash rate hike to their savings customers.
From next Friday, ING’s new highest ongoing savings rate will rise to 5.25% for those who meet the monthly conditions. However, the bank did not apply the hike to its base rate of 0.01% for those who do not meet the conditions.
Meanwhile, Macquarie will lift its ‘no strings attached’ savings account to an ongoing rate of 4.75%, with an intro rate increasing to 5.10% for four months, effective 2 April.
Westpac – one of the first out of the blocks on Tuesday night – is passing on the hike in full to select savings rates from next Friday – four days before its home loan rate changes kick in.
As a result, the bank’s new highest ongoing savings rate will be 5.50%, however, this rate is only available to Australians aged 18-34. As we so often see, the bank did not apply the increase to the base rate.
CBA, NAB and ANZ are yet to announce savings rate changes.
Banks’ savings announcements and their new maximum ongoing rates:
- Westpac: 5.50% (ages 18-34), from 27 March
- ING: 5.25% from 27 March
- Macquarie: 4.75% from 2 April
- ubank: 4.85% from 24 March
- Teachers Mutual Bank: up to 5.00% from 26 March
- Judo Bank: 5.35% from 23 March
- AMP Bank: 4.85% from 23 March
How did savers fare during the February cash rate hike?
While the majority of banks are yet to announce their new savings rates, Canstar analysis shows since the last rate hike on 3 February, many were selective on which rates saw a boost and which missed out.
On average, the total rate on bonus saver accounts increased by 0.25, while the base rate – the rate earned if savers don’t meet their bonus conditions – rose by an average of just 0.01.
Average bonus saver rates since February RBA hike | |||
|---|---|---|---|
1 Feb | Today | Change %-pts | |
Maximum rate | 3.99% | 4.23% | +0.25 |
Base (if conditions not met) | 0.21% | 0.22% | +0.01 |
RBA cash rate | 3.85% | 4.10% | +0.25 |
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.
Canstar’s data insights director, Sally Tindall, says, “It’s great to see the market leaders for savings rates, ING, Macquarie and Westpac for young adults, do the right thing for their savers”.
She added: “One drawback from these announcements is that ING and Westpac won’t be passing this increase on to their base savings rates, which means customers will have to make sure they meet their bank’s terms and conditions to qualify for the maximum rate.
“For those who prefer to avoid the hoops, Macquarie’s ongoing rate will rise to 4.75 per cent. This announcement puts the bank on track to offer the highest ongoing savings rate that doesn’t come with monthly conditions to qualify.
“The fact that the market leaders have passed on the full rate hike, albeit to their bonus rates, should put pressure on the others to do the same.
“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.
“Since the last rate rise in February, bonus rates lifted by the full 0.25 percentage points, but base rates barely moved, leaving anyone who misses the fine print falling behind.”
