The highest ongoing savings rate has today climbed to 6.30% as banks begin passing on the RBA’s November rate hike.
Virgin Money this morning increased the maximum rate on its Boost Saver by 0.50 percentage points – double what was prescribed by the RBA.
However, this account comes with a large amount of fine print to earn this ongoing rate.
Savers must deposit at least $1,000 into a linked bank account and make five or more transactions using this account each month. They also have to give the bank 32 days’ notice before withdrawing the money.
Customers who fail to meet all of these conditions will earn just 0.05%.
Canstar tracking shows five banks now offer an ongoing savings rate starting with ‘6’, following last Tuesday’s 0.25 cash rate hike.
Current highest savings rates on Canstar | ||
|---|---|---|
Type of account | Max rate (if conditions met) | Bank |
Bonus saver | 6.30% | Virgin Money |
Unconditional saver | 5.75% | AMP |
Introductory saver | 6.50% for 4 months, 5.90% | ING |
Source: Canstar. Conditions apply for maximum and some 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.
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.
Big four bank bonus saver rates following RBA September hike | |||
|---|---|---|---|
Bank | Account | Max rate | Base rate |
CBA | Goal Saver | 5.50% | 0.10% |
Westpac | Life | 5.50% | 0.10% |
Westpac | Life (18 - 40) | 6.20% | 0.10% |
NAB | Reward Saver | 5.50% | 0.01% |
ANZ Plus | Growth Saver | 5.60% | 0.10% |
ANZ | Progress Saver | 4.25% | 0.01% |
Source: Canstar. Note: conditions apply for max rate.
ASIC puts banks on notice over savings rate traps
The savings rate race is heating up, but not every customer is winning.
ASIC warned banks over confusing savings rate offers, with the competition regulator investigation previously finding 71% of bonus saver accounts failed to earn the bonus rate in an average month in the first half of 2023.
A 2026 Canstar survey found 2 in 5 savers with a bonus account miss out on earning the maximum rate every month.
So how do savings account options stack up?
Bonus saver accounts offer the highest ongoing rates, but they come with monthly conditions. For savers who struggle to meet them, an account that doesn’t have monthly criteria to earn the maximum rate could be a better option.
Canstar compared how much someone with $25,000 in savings could earn over a year under different scenarios.
Someone who meets the bonus conditions on the highest bonus saver account could potentially earn $145 more in interest over the next year than if they had their money in the highest unconditional account.
However, if they fail to meet the conditions every month, they could earn an estimated $1,463 less than the unconditional account.
This assumes savings rates remain as they are for the next 12 months.
Bonus vs ‘no strings’ vs intro savings accounts: $25,000 deposit | |||
|---|---|---|---|
Rate | Interest 1 yr | Diff to unconditional | |
Highest account with no monthly conditions | 5.75% | $1,476 | |
Bonus saver - meets monthly criteria | 6.30% | $1,621 | $145 |
Bonus saver – meets criteria for half the year | 0.05% - 6.30% | $802 | -$674 |
Bonus saver – never meets criteria | 0.05% | $13 | -$1,463 |
Source: Canstar. Notes: Calculations are estimates based on a $25k deposit. Does not take into account additional deposits. Assumes terms and conditions are met to earn maximum rate where specified. The half year is assumed to be the first 6 months from a start date of 1 Dec. Interest is calculated daily and compounded monthly.
Beware the fine print and conditions
Canstar's Data Insights Director, Sally Tindall, says, “It’s payday for savers, but not everyone will be cashing in.”
“In February, when the RBA delivered its first rate hike for 2026, we were celebrating the return of 5 per cent savings rates. Now we’ve well and truly sailed past that milestone.
“Virgin Money will grab attention with a 6.30 per cent ongoing rate, but savers should jump on this bandwagon at their own risk, and having read the fine print.
“Between the monthly requirements and a 32-day notice period to withdraw your money, there’s quite a bit of fine print to navigate. And if you trip up on all of it, the rate falls to just 0.05 per cent.
“It’s fantastic to see five banks now offering ongoing rates starting with a ‘6’, giving diligent savers a chance to outpace inflation, provided they’re able to play by the bank’s rules.
“The big four banks were quick to pass on the latest rate hike to borrowers, and they’ve also lifted their bonus savings rates by the full 0.25 which is great to see. But once again, it’s only on the portion that’s contingent on customers meeting the monthly criteria.
“ASIC’s investigations into savings rates should be a wake-up call for anyone who thinks they’re automatically getting the rate that’s splashed across their bank’s advertising.
“There’s no point chasing a headline rate if you can’t meet the conditions to get it.
“Our numbers show that if you’re constantly tripping over the monthly conditions on a $25,000 balance, chasing that headline 6.30 per cent rate could potentially leave you more than $1,400 worse off over a year in pre-tax dollars compared to a no-strings-attached account.
“Before you chase the highest number on the board, be honest with yourself about your banking habits. Sometimes a slightly lower rate with fewer conditions will put more cash in your pocket at the end of the year than a sky-high bonus rate you never actually qualify for.”
