RBA raises cash rate: Which banks are hiking their savings rates?

Interest rates are set to rise again following last week’s cash rate hike – the fifth in as many months. Borrowers will soon be hit with higher mortgage repayments, but there is a silver lining for some savers.

The Reserve Bank of Australia (RBA) raised the official cash rate by half a percentage point last Tuesday. It now sits at 2.35%, the highest it’s been since early 2015.

All of the big four banks have now passed on the increase in full to their variable home loan rates. But the banks have been divided on whether to pass on the increase to savers.

Bucking the trend of previous cash rate rises, NAB and ANZ decided to not pass on the increase to savers (at least, not yet). Commonwealth Bank and Westpac, on the other hand, have announced increases to some of their savings and term deposit products.

Which banks have increased their savings rates?

We’ll be updating this article as the changes come through from the major banks and other institutions. We’re also tracking home loan rate increases separately.

Australian Unity

Australian Unity has increased its savings account interest rates by 0.30 percentage points from 8 September 2022. The Active Saver now has a total interest rate of 2.80%, the Freedom Saver has a total interest rate of 2.40%, and the Easy Saver has a total interest rate of 2.90%. Australian Unity has also increased selected term deposit rates. Its nine-month term deposit interest rate has increased by 0.75 percentage points, while its one-year term deposit interest rate has increased by 0.25 percentage points.

Bankwest

Bankwest will pass on the increase in full to its Hero Saver and Easy Saver savings accounts. From 16 September 2022, Bankwest’s Hero Saver will have a total interest rate of 2.50% (0.20% base rate and 2.30% bonus rate) for balances up to $250,000. Bankwest’s Easy Saver rate will increase to 2.35% for balances up to $50,000.

Commonwealth Bank

CBA said it will increase rates on some of its savings accounts and term deposits above the level of the RBA’s September cash rate hike.

Its GoalSaver with bonus interest rate will increase by 0.60 percentage points p.a. to a maximum rate of 2.10% p.a., with the same level of increase applying to its Youthsaver with bonus interest, taking the maximum interest rate on that account to 2.30% p.a. Increases to these savings rates will be effective from 16 September 2022. CBA had not announced a rate change to its NetBank Saver account at the time of writing.

Additionally, the major bank announced that some of its term deposit interest rates will increase by up to 0.75 percentage points, effective 12 September.

Greater Bank

Greater Bank will increase its Life Saver account for under 25s by 0.50 percentage points. From 14 September 2022, the Life Saver will have a total interest rate of 1.50%.

ING

ING will increase its Savings Maximiser by the full 0.50 percentage points. This will apply to the bonus rate. From 15 September 2022, the total rate will be 3.60%.

ING will also its Savings Accelerator by 0.50 percentage points. From 15 September 2022, the standard rate for balances over $150,000 will be 2.60%, for balances between $50,000 and $150,000 it will be 2.40%, and for balances under $50,000 it will be 1.50%.

Macquarie

Macquarie has increased its Savings Account welcome rate by 0.60 percentage points. The total rate is now 3.70% for new customers for the first four months on balances up to $250,000.

Macquarie will also increase the ongoing interest rate customers can earn on their Savings Account and Transaction Accounts by 0.50 percentage points. From 16 September 2022, the total rate will be 2.75% for balances up to $250,000.

Macquarie has also increased two-year term deposit rates by 0.50 percentage points to 4.05%, effective now. This applies to balances under $1 million with interest paid at maturity.

MyState Bank

MyState Bank will increase its Bonus Saver interest rate by 0.60 percentage points. From 19 September 2022, the Bonus Saver will have a total interest rate of 3.20%.

St.George, Bank of Melbourne and BankSA

St.George, Bank of Melbourne and BankSA will increase their Incentive Saver by 0.75 percentage points. The change will apply to the standard variable rate. From 20 September 2022, the total rate will be 2.85%.

The Westpac subsidiaries will also increase their term deposit special offers to 3.65% for 12- to 23-month terms. It will be available from 13 September 2022.

Suncorp

Suncorp will increase its 18-month term deposit by 0.30 percentage points. Savers can now earn 3.50%.

Ubank

Ubank will pass on the increase in full. From 1 October 2022, ubank’s Save and USave accounts will have a total interest rate of 3.35% (0.10% base rate and 3.25% bonus rate).

Westpac

Westpac will pass on the 0.50 percentage point increase in full to its Westpac Life accounts. From 20 September 2022, the total rate with bonus interest will be 2.35%.

For under 18s, Westpac will raise its Westpac Bump Savings account rate by 0.65 percentage points. From 20 September 2022, the total rate will be 2.35%.

Westpac has also announced a new term deposit offer of 3.25% for terms between 12- and 23- months. This will be effective 13 September 2022.

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

Virgin Money’s Boost Saver is currently the top savings rate on Canstar’s database available for people of all ages. It offers a 3.30% total interest rate, plus an additional 0.30% if you turn on the Lock Saver feature. If you enable the Lock Saver feature, you have to give 32 days’ notice if you want to unlock your account or withdraw your money.

This will soon be surpassed by ING’s Savings Maximiser. From 15 September 2022, it will offer a 3.60% total interest rate. You’ll have to jump through a few hoops to get the top rate though. To get the bonus interest, you need to deposit at least $1,000 into any personal ING account in your name, make five card purchases and grow your balance.

If you’re happy to lock away your savings, you could consider a term deposit. Macquarie currently offers the top 12- and 24-month term deposit rates on our database. For 12-month terms Macquarie is offering 3.65% paid annually. For 24-month terms, it is offering 4.05% paid annually.

Cover image source: Canstar.