CBA, NAB and ANZ raise mortgage rates but not all savers get the full hike

Three of the big four banks have today hiked their mortgage rates but not all their savers have seen the benefit of the full RBA rate rise.

CBA, NAB and ANZ increased variable mortgage rates by 0.50 percentage points for new and existing customers, while Westpac will raise its rates next Thursday.

Home loan rates, post August RBA hike

Owner-occupiers paying principal and interest

Source: RateCity.com.au. Note some loan-to-value ratios apply. Westpac rates effective 18 August.

While variable customers will be charged the higher interest rate from today, it will take several weeks before their repayments rise.

The banks typically give customers a minimum of 20 to 32 days’ notice before increasing their monthly repayments.

Big four banks’ minimum notice periods for rate rises for principal and interest customers:

• CBA: at least 20 days’ notice from the date of customer’s notification letter.
• Westpac: at least 30 days’ notice from the date of letter.
• NAB: at least 32 days’ notice from the date of letter.
• ANZ: at least 30 days’ notice from the date of letter.

RateCity.com.au research director, Sally Tindall, said: “Variable borrowers’ rates might be rising today, but their monthly repayments aren’t likely to move for at least another few weeks.”

“That’s because banks typically give borrowers at least 20 days’ notice before increasing their monthly repayments. This lag gives borrowers time to prepare for higher repayments, but it could also catch some people out,” she said.

“If you’re on a variable rate, find out what your new monthly repayment will be but also what date it starts. Make sure you’ll have got enough money in your account to clear these higher repayments. If you don’t think you’ll have enough money, call your bank before it’s due to avoid a black mark against your name.

“This is the fourth rate hike in as many months. While most borrowers have been weathering the storm until now, it could be crunch time for some households who aren’t prepared for yet another increase,” she said.

Big four banks hike savings rates – but not all customers get the full 0.50% boost

Australia’s largest bank, CBA, has today increased the ongoing rate on the NetBank Saver by 0.50 percentage points as announced. However, the bank has now also decided to increase the rates on its popular GoalSaver and Youthsaver accounts, but only by 0.25 percentage points.

NAB has increased all its savings rates by the full 0.50 percentage points today, while ANZ has left millions of its savers in the cold by only increasing the rate on its new ANZ Plus Save account. Westpac has announced it will increase most of its savings accounts by between 0.50 and 0.55 percentage points next Thursday.

Big four bank savings rate rises in August

Source: RateCity.com.au. Conditions apply for max bonus saver rates.

How the big four bank savings accounts compare to the market leaders

Although the big four bank savings rates are on the way up, they still fall well short of the market leaders.

Bonus savers – market leaders for all adults

Source: RateCity.com.au. Conditions for max interest rate apply. Ubank rate effective 1 Sept.

There are also banks offering decent interest rates with no monthly conditions.

Macquarie Bank has today increased the rate on its transaction account to 2.25 per cent, while ANZ raised its Plus Save account to 2.50 per cent.

Highest savings rates for accounts with no monthly conditions

Source: RateCity.com.au

Sally Tindall said: “The gap between the lowest and the highest savings rates is starting to blow out with every hike that rolls in, which makes finding a decent rate all the more important.”

“Your bank might have done right by you this month by passing on the full 0.50 percentage point hike, but what ultimately matters is your interest rate and whether you’re meeting your bank’s terms and conditions to qualify,” she said.

“If you want to do right by your nest egg, look for an account that’s above the cash rate at an absolute minimum. Keen savers should now be able to get ongoing rates well above 2 per cent. In fact, you can even get above 3 per cent, but you’ll have to jump through hoops to qualify.

“For years decent savings rates have come with reems of fine print, but this is changing.

“ANZ might have failed to pass on the hike to its two main savings accounts, however, it has increased its new Plus Save account to an ongoing rate of 2.50 per cent with absolutely no strings attached.

“Macquarie Bank is also shaking things up by continuing to pass on full hikes to its transaction account. Macquarie customers can now earn 2.25 per cent on every spare dollar in their bank account, without any tricky fine print. That’s a breath of fresh air for people who hate having to shuffle money back and forth,” she said.

Big four bank savings rates

Source: RateCity.com.au. Note: some conditions apply for maximum rates. *Westpac rate effective 18 August.

Compare home loans in Australia