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The savings accounts that pass Lowe’s sniff test
A total of 24 savings accounts pass Governor Lowe’s sniff test with rates of 4.50 per cent or above, according to the RateCity.com.au database.
Speaking at The National Press Club yesterday, Governor Lowe, said, if Australians were not getting 4.50 per cent on their deposit, “I encourage you to look around for a bank that will give that to you”.
There are currently over 300 savings accounts on the RateCity.com.au database. Of these, just 24 offer ongoing rates of 4.5 per cent or more including:
- 15 savings accounts for all adults,
- 5 savings accounts for young adults,
- 4 savings accounts for kids,
- Just one big four bank savings account meets this mark: Westpac’s Spend&Save offers 4.70%, but only for people aged 18-24 years.
Highest ongoing savings rates on RateCity.com.au
| Bank | Ongoing savings rate | Conditions | Balance cap for max rate |
| Australian Mutual - Young Saver Account - kids | 5.50% | Ages 0-18yrs. | $50,000 |
| Bank of Queensland - Future Saver - young adults | 5.15% | Ages 14-35yrs. Deposit $1,000+ into linked bank account and make 5+ purchases / mth (waived for under 18s) | $50,000 |
| Great Southern Bank - Youth Esaver - kids | 5.10% | Ages 0-18yrs. | $50,000 |
| ING - Savings Maximiser | 5.00% | Deposit $1,000+ into a linked bank account, make 5+ purchases /mth, grow savings balance each mth | $100,000 |
| MOVE Bank - Growth Saver | 5.00% | Deposit $200+ and make no withdrawals | $25,000 |
| Virgin Money - Boost Saver | 4.85% | Deposit $2000+ into a linked bank account (less for under 25s) and make 5+ purchases /mth. Provide 32 days’ notice to withdraw. | $250,000 |
| Great Southern Bank - Goal Saver - young adults | 4.85% | Ages 18-24yrs. Deposit $500+ into a linked bank account, make 5+ purchases /mth | $50,000 |
| Great Southern Bank - Home Saver | 4.75% | Deposit $2,000+ into linked bank account and make 5+ purchases / mth | $100,000 |
| Westpac - Spend and Save - young adults | 4.70% | Ages 18-29yrs. Grow balance and make 5+ purchases / mth | $30,000 |
| Bank of Queensland - Smart Saver | 4.60% | Ages over 35. Deposit $1,000+ into linked account and make 5+ purchases / mth | $250,000 |
| ubank - Save | 4.60% | Deposit $200+ every month into any linked account | $250,000 |
| Great Southern Bank - Advantage Saver | 4.60% | Grow the balance by $250 each month | $100,000 - $750,000 |
| Peoples Choice - Young Saver Account - kids | 4.55% | Ages 0 – 17. Deposit $5+ each month and no withdrawals | $30,000 |
| St.George - Incentive Saver | 4.50% | Deposit $50+ /mth (less for under 21s) . Extra 0.10% for 3 mths if opening online | N/A |
| Bank of Melbourne - Incentive Saver | 4.50% | Deposit $50+ /mth (less for under 21s) . Extra 0.10% for 3 mths if opening online | N/A |
| BankSA - Incentive Saver | 4.50% | Deposit $50+ /mth (less for under 21s) . Extra 0.10% for 3 mths if opening online | N/A |
| MyState Bank - Bonus Saver | 4.50% | Deposit $20+ /mth into savings account and 5+ purchases on linked bank account | $250,000 |
| First Option Bank - Savings+Bonus | 4.50% | Deposit $100+ / mth and no withdrawals | $250,000 |
| G&C Mutual Bank - Bonus Saver | 4.50% | Deposit $100+ / mth and no withdrawals | N/A |
| RACQ Bank - Bonus Saver | 4.50% | Deposit $100+ / mth and no withdrawals | $99,999 |
| People’s Choice - Dream Fund | 4.50% | Grow balance each month | N/A |
| Police Bank - U30 Super Charge - young adults | 4.50% | Ages 18-29yrs. Deposit salary into a Police Bank account | $10,000 |
| Bank of Heritage Isle - U30 Super Charge - young adults | 4.50% | Ages 18-29yrs. Deposit salary into a Police Bank account | $10,000 |
| IMB - Reward Saver Kick Start - kids | 4.50% | Under 18s and students up to 30: Deposit $20+ each month and make no withdrawals | $10,000 |
Source: RateCity.com.au. Monthly conditions apply for max rate. Excludes kids savings accounts.
However, after 10 RBA hikes, and an increase to the cash rate of 3.50 percentage points, many savings accounts are still trailing a long way behind, including all four big banks’ online saver accounts, which have ongoing rates ranging from 1.10 per cent to 1.85 per cent.
RateCity.com.au research director, Sally Tindall, said: “Governor Lowe has set a very reasonable savings benchmark, yet the vast majority of accounts aren’t even close to clearing this.”
“Just 24 accounts currently offer ongoing savings rates of 4.50 per cent or more from a total of 19 banks,” she said.
“If your cash is sitting in an account paying less than 4.50 per cent, take the Governor’s advice and find a bank prepared to pay you an acceptable rate of interest.
“Keen savers can get ongoing rates of 5 per cent or more if they’re willing to clear a few hurdles to qualify.
“Use the break to check what rate you’re earning on your savings and measure it up against the competition. Half an hour of research on Easter Monday could end up being a highly profitable use of your time – even at public holiday rates.
“The latest APRA statistics show that 73 per cent of household deposits are with the big four banks, despite the fact the majority of their accounts do not offer market leading rates.
“Just one account from a big four bank passes Governor Lowe’s savings rate sniff test, while many of the others aren’t even within cooee of it.
“There are millions of big four bank online savings customers out there earning less than 2 per cent on their nest eggs. That’s nowhere near good enough,” she said.
Big four bank savings rates
| BONUS SAVERS | ||
| Account | Rate | Conditions for max rate |
| CBA GoalSaver | 4.15% | Grow balance each mth |
| Westpac Life | 4.25% | Grow balance each mth |
| NAB Reward Saver | 4.25% | 1 deposit, no withdraw / mth |
| ANZ Progress Saver | 3.75% | $10+ dep, no withdraw/mth |
| ONLINE SAVERS | ||
| Account | Rate | Intro rate and conditions |
| CBA NetBank Saver | 1.85% | 4.25% for 5 mths. No conditions. |
| Westpac eSaver | 1.10% | 4.25% for 5 mths. No conditions. |
| NAB iSaver | 1.60% | 4.25% for 4 mths. No conditions. |
| ANZ Online Saver | 1.10% | 2.90% for 3 mths. No conditions. |
| OTHER | ||
| Account | Rate | Conditions for max rate |
| Westpac Spend&Save (18-29yrs) | 4.70% | Grow bal each mth. 5+ purchases on linked bank account. |
| ANZ Plus Save (15yrs+) | 4.25% | None |
Source: RateCity.com.au.
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Product database updated 19 Nov, 2024
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