December cash rate hike: which banks are increasing savings rates?

The Reserve Bank of Australia (RBA) has once again announced that it will increase the official cash rate, and we’ll be keeping track of which banks announce changes to deposit rates for savers. 

The RBA raised the official cash rate by another 25 basis points at its December board meeting, taking the rate to 3.10% to close out the year. While this means that borrowers with variable rate home loans are likely to see their monthly repayments get more expensive, it also mean that savers may see an increase to the amount of interest they earn each month.

That said, it is not guaranteed that your bank will raise its deposit rate in line with the RBA’s announcement. In recent months, as the cash rate has risen, banks have been quick to pass on rate hikes home loan borrowers, but only some have passed the increases on to their savings and deposit customers.

Irrespective, we’ll be keeping track of which banks move their savings rates following the December cash rate increase, and updating this article accordingly.

Which banks have increased their savings rates?

So far, these are the banks that have announced changes to their savings and deposit rates:

Bank of Queensland (BOQ)

• BOQ’s Future Saver will increase by 0.50% to 4.75% p.a. for balances up to $50,000, effective 9 December.
• BOQ’s Smart Saver will increase by 0.15% p.a. to 4.00% p.a. for balances between $1 and $250,000, effective 9 December.
• BOQ’s Simple Saver 4 month Introductory Special will increase by 0.50% for a total rate of 4.10% p.a. for balances up to $5M, effective 9 December.

CommBank

• CommBank’s NetBank Saver standard variable interest rate will increase by 0.25% p.a. to 1.60% p.a. The five-month introductory variable rate will increase by 0.50% p.a. to 3.75% p.a., effective 16 December.
• CommBank’s GoalSaver with bonus interest rate will increase by 0.55% p.a. to 3.25% p.a., effective 16 December.
• CommBank’s Youthsaver with bonus interest rate will increase by 0.60% p.a. to 3.50% p.a., effective 16 December.
• CommBank will also increase the availability of its 18-month term deposit special.

Macquarie Bank

• Macquarie’s ongoing interest rate on savings and everyday transaction accounts will increase 0.25% to 3.70% p.a., on balances up to $250,000, effective 16 December.
• Macquarie’s three-month term deposit interest rate will increase by 0.25% to 3.35% p.a., effective 7 December.

ME Bank

• ME Bank has increased rates on its Online Savings Account by 0.25% to 3.25% p.a., effective 9 December.

Westpac

• Westpac Life total variable rate with bonus interest will increase by 0.25% p.a. to 3.75% p.a, effective 16 December.
• Under Westpac’s Spend&Save offer for 18-29 year olds, eligible customers can earn a total variable rate of 4.35% p.a., an increase of 0.35% p.a., effective 16 December.

Virgin Money

• Virgin Money’s Boost Saver interest rate will increase by 0.45% p.a. to 4.30%p.a. (when the Monthly Criteria are met), effective 9 December.
• When customers enable the new Lock Saver Feature, the interest rate will increase up to 4.60% p.a on the Boost Saver Account (when monthly criteria are met). 

When the Lock Saver Feature is enabled, customers are required to provide 32 days’ advance notice to unlock their account or withdraw money from that account.    

What are the top savings and term deposits rates currently on offer?

If you’re considering opening a savings account, or switching from your current provider to earn a better interest rate, you can compare savings accounts with Canstar to find one that could suit your needs. We also keep track of the top term deposit rates on Canstar’s database, ranked by six-month, 12-month and 24-month terms.