The highest ongoing savings rate has hit 6.00%, a rate this country hasn’t seen in well over a decade, as banks start to pass on the RBA September hike to some savings customers.
BOQ has lifted the rate on its Future Saver account by 0.20 to 6.00%, while Newcastle Permanent lifted its Smart Saver Under 25s account by 0.25 to 6.00%. However, not all Australians can sign up to these new ongoing savings rates.
Newcastle Permanent’s account is only for savers aged under 25, while BOQ’s account is only for those aged 14 to 35, with both accounts requiring monthly terms and conditions to be met.
A small handful of other banks also offer savings rates that start with a ‘6’, including ING, ubank, and Bankwest, however, these rates are new customer introductory offers that last for a maximum of four months.
The highest savings account with no monthly conditions that is available to all adults, is now 5.50% from AMP, however, it's only on balances of up to $50,000.
Current highest savings rates on Canstar | ||
|---|---|---|
Type of account | Rate, if conditions met | Bank |
Bonus saver - young adults | 6.00% | BOQ (14-35) |
6.00% | Newcastle Permanent (< 25) | |
Bonus saver - all adults | 5.75% | ING |
Unconditional saver | 5.50% | AMP |
Introductory saver | 6.25% for 4 months, then 5.65% | ING |
Source: Canstar. Conditions apply for maximum and ongoing rates, balance caps also apply. Excludes paid subscription accounts. Unconditional accounts are ones with no monthly terms to qualify for max rate on an ongoing basis.
Big four banks hike bonus rates but leave base rates put
The big four banks have today hiked the majority of their bonus saver rates by the full 0.25, in line with the hike to their mortgage rates.
The exception was Westpac, which hiked the maximum rate on its young adult bonus saver account by just 0.20 percentage points, to 5.95% – just short of the 6.00% mark.
However, none of the big banks have increased the base rates on their bonus saver accounts, which means customers who regularly miss the monthly criteria will not get a rate hike at all.
Big four bank bonus saver rates | ||||
|---|---|---|---|---|
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 | 4.00% | 0.01% | +0.25 to max rate 0.00 to base |
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.
The big banks are following what is now a well-worn playbook when it comes to rate hikes on bonus saver accounts.
Canstar analysis shows following the May RBA decision, banks passed the hike on in full to the headline rates on their bonus saver accounts. In fact, some banks hiked by more than the RBA.
However, the base rate on these accounts rose by an average of just 0.01 percentage points.
Average change in bonus saver | |||
|---|---|---|---|
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.
6 per cent savings rate is a major milestone
Canstar’s data insights director, Sally Tindall, says, “Hitting the 6.00 per cent threshold is a major milestone for Aussie savers.”
“While this is cause for celebration in the savings space, anyone looking to get the most out of their nest egg should pay attention to the fine print because banks are increasingly wrapping their rates up in conditions designed to catch at least some savers out.
“From monthly conditions to age and balance caps, when it comes to savings rates, it’s easy to be caught out by a headline if you don’t bother reading every line of print below it.
“For example, BOQ’s new market-leading rate is a win for those aged 14 to 35 who can clear monthly requirements, but only for balances up to $50,000.
“When it comes to bonus savers, the big banks are following a well-worn playbook, passing the full 0.25 on to headline rates to stay competitive, while leaving base rates stranded near zero.
“Customers who fail to meet monthly conditions are essentially left out in the cold with interest rates as low as 0.01 per cent.
“If you aren't actively tracking your account criteria every single month, your bank could well be keeping the extra interest for itself.”
