The top savings rate has climbed to 5.65% this week, after Rabobank lifted its rates by 0.25 percentage points in the wake of last week’s cash rate hike.
However, the headline rate is reserved for new customers for the first four months, before reverting to a much lower ongoing rate of 3.95%.
The move comes as other market leaders, including Westpac, AMP, Judo, ING and Macquarie, have also raised savings rates since the RBA decision, passing on increases of up to 0.25 percentage points to customers.
Market leading savings rates | |||
|---|---|---|---|
Type of savings account | Rate | Lender | Conditions |
Introductory saver | 5.65% for 4 mths, then 3.95% | Rabobank | Balances up to $250k. Ongoing rate of 3.95% |
Bonus saver - all adults | 5.35% ongoing | Judo Bank | Deposit $300/mth on balances up to $250k. Base rate of 0.05% |
Bonus saver - young adults | 5.50%* ongoing | Westpac | 20+ purchases on linked bank account, grow savings balance, up to $30k, Ages 18-34. Base rate of 0.10% |
‘No strings’ saver | 4.85% ongoing | AMP Bank | On balances up to $500k |
Source: Canstar. Conditions apply for maximum rate on above accounts. *Westpac rate effective 27 March.
Big four banks drip feed savings hike announcements
Three of the big four banks - Westpac, CBA and then NAB - have announced they will lift savings rates by up to 0.25 from Friday (27 March) in response to last Tuesday’s cash rate hike – but only on select rates.
ANZ is yet to say what it will do for its savings customers. However, if history is anything to go by, the bank will hike select savings rates from tomorrow (27 March).
As a result, Westpac will offer the highest ongoing savings rate among the big four, with its top rate rising to 5.50%, though this is limited to customers aged 18 to 34.
For all-adult accounts, CBA and Westpac are set to lead the majors, with ongoing rates of 4.75%.
Big four banks highest ongoing savings rates post March hike | |
|---|---|
New rate | |
CBA Goal Saver | 4.75% |
Westpac Life | 5.50% - ages 18-34 4.75% - all ages |
NAB Reward Saver | 4.65% |
ANZ Plus Growth Saver | TBC |
Source: Canstar. Conditions apply for maximum rate on above accounts. CBA, Westpac and NAB rates effective 27 March.
Canstar's data insights director, Sally Tindall, says, “It’s encouraging to see market leaders such as Rabobank, Judo Bank, AMP Bank and Westpac – particularly for younger savers – passing on the latest rate hike.”
“However, while rates for savers are finally becoming more competitive, the devil is in the details.
“Rabobank’s new market-leading rate has climbed to 5.65 per cent, but it’s reserved for new customers for just four months, before dropping to an ongoing rate of 3.95 per cent.
“Savers willing to meet a few conditions can earn ongoing rates of up to 5.35 per cent from Judo Bank, while those aged 18 to 34 can access the highest ongoing rate of 5.50 per cent with Westpac.
“For those who prefer a simpler option, AMP Bank is leading the market with an ongoing rate of 4.75 per cent, offering one of the highest returns available without monthly hurdles.
“If you’re one of the millions of Australians with a savings account, it’s critical to read the fine print. Time and again, we see banks pass on rate hikes to bonus rates and introductory rates but the base rates largely miss out.”
