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Savings rates starting with a ‘5’ an endangered species as savers brace for a July RBA cut
01 July 2025
Australians squirrelled away an extra $6.3 billion in the month of May, as savers stare down the barrel of another potential RBA cash rate cut next Tuesday.
The latest APRA Monthly Authorised Deposit-taking Institution Statistics, released yesterday, shows the total amount saved in the bank from households is now $1.62 trillion – another record high.
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| APRA total deposits by households | ||
|---|---|---|
| Amount | Monthly change | Year-on-year change |
| $1.62 trillion | +$6.3 billion
0.4% |
+$138.0 billion
9.3% |
Source: APRA Monthly Authorised Deposit-taking Institution Statistics, released 30 June 2025, prepared by Canstar. Note: deposits from households include term deposits, transaction accounts, mortgage offset accounts and savings accounts on the books of ADIs.
Just four banks still offering rates starting with a ‘5’
Last week, six banks were offering at least one ongoing savings rate at 5% or higher, however today, this list has dropped to just four after BCU and P&N Bank cut their highest ongoing savings rates from 5.00% to 4.90%.
If the RBA cuts the cash rate next Tuesday, savings rates starting with a ‘5’ may disappear altogether.
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| Highest ongoing savings accounts on Canstar | |||
|---|---|---|---|
| Account | Max ongoing rate | Monthly conditions | Base rate if not met: |
| BOQ Future Saver | 5.10% | Deposit $1K, make 5+ transactions in linked bank acct. For 14-35yr olds. | 0.05% |
| Westpac Life Spend&Save | 5.00% | Grow balance, make 5+ transactions in linked bank acct. For 18-29 year olds. | 0.40% |
| MOVE Bank Growth Saver | 5.00% | Deposit $200 into savings acct and make no withdrawals. Balances up to $25k. | 0.10% |
| ING Savings Maximiser | 5.00% | Deposit $1K, make 5+ transactions in linked bank acct + grow savings balance. Balances up to $100k. | 0.05% |
Source: Canstar. Top providers selected and table sorted in descending order by total rate, followed by base rate. One product per provider is listed. Excludes kids and intro rate accounts.
Banks continue to grow their residential mortgage books
The total value of housing loans among all ADIs continued to climb, increasing by $12.9 billion (0.6%) between April and May and $124.6 billion (5.7%) in the last year.
In dollar terms, CBA once again recorded the biggest monthly rise among the big four banks in its residential mortgage book in May, increasing by almost $3 billion in the space of a month.
Over the past year, Australia’s biggest bank grew its residential mortgage book by over $34 billion.
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| Loans to households: housing | ||||
|---|---|---|---|---|
| Amount | Market share | Monthly change | Year-on-year change | |
| CBA | $588.9 billion | 25.3% | +0.5% | +6.1% |
| Westpac | $485.5 billion | 20.9% | +0.3% | +2.4% |
| NAB | $332.1 billion | 14.3% | +0.5% | +4.0% |
| ANZ | $316.2 billion | 13.6% | +0.6% | +6.0% |
| Macquarie | $141.3 billion | 6.1% | +1.7% | +19.5% |
| All ADI loans | $2.33 trillion | 100.0% | +0.6% | +5.7% |
Source: APRA Monthly Authorised Deposit-taking Institution Statistics, May 2025. Includes both owner occupied and investor loans to households for the big four banks and Macquarie. ANZ figures do not include the former Suncorp mortgages.
Savings rates continue to slide
Canstar’s data insights director, Sally Tindall says, “Australians are continuing to stockpile their cash, despite cost of living pressures on the rise for bills such as electricity, with money in the bank from households increasing by more than $6 billion in the space of a month.”
“Unfortunately for those with money in savings accounts and term deposits, savings rates continue to slide with Canstar data showing there are now just four banks offering ongoing savings rates of 5 per cent or more.
“Rates starting with a ‘5’ are fast becoming an endangered species. If the RBA cuts next week, they could be extinct within days.
“On the mortgage front, CBA recorded the biggest monthly rise among the big four banks in its residential mortgage book, increasing by almost $3 billion in just 31 days, spurred on by interest from borrowers on the back of RBA cuts in February and May.
“CBA, Westpac and ANZ are all offering a relatively-competitive variable rate of 5.59 per cent, in an effort to consolidate their lead.
“That said, low-cost lenders are snapping at their heels, offering rates well below 5.50 per cent, giving owner-occupiers plenty of sharp options to choose from – but they’ll need to look beyond the big four banks to find them.”
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Cover image source: Amnaj Khetsamtip/Shutterstock.com
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
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