Which banks have hiked savings account and term deposit rates in March 2023?

The Reserve Bank of Australia’s (RBA’s) mission to bring down high inflation has seen the national cash rate increase for the 10th straight monthly meeting as of March 2023. With several Australian banks and Authorised Deposit-taking Institutions (ADIs) passing this rate rise on to savers, more Australian savings account interest rates are starting to hit the 5.00% mark.  

Savings accounts

At the time of publishing, the following banks and mortgage lenders had announced increases to their savings account interest rates of the back of the RBA’s decision:

As well as announcing hikes to saving account interest rates following the RBA announcements, some Australian banks raised rates for savers prior to the update.

For example, BOQ is now offering up to 5.15% on its Future Saver account, while Virgin money raised the rate on its Boost Saver account up to 4.85%. ME Bank also raised the rate on its Online Savings Account by 50 points on 8 March 2023 up to 3.75%.

Some savings accounts have specific eligibility criteria, such as age restrictions or maximum deposit amounts, which may make them better suited to some savers than others. Remember to compare savings accounts before you consider jumping ship.

Term deposits

Several banks and ADIs also announced changes to term deposit interest rates following the RBA decision, or introduced new term deposit products:

• Hume Bank announced changes to a range of term deposits effective 9 March 2023, hiking rates from 25 to 130 points, with the new highest rate being 4.25% for 12 to 24 months for balances over $5000, interest paid annually or at maturity.  
• St.George, Bank of Melbourne and BankSA raised the rate on their 12-23 month term deposit from 4.00% to 4.50%, or 4.60% with the online bonus.
• Australian Unity Bank announced it would increase its six month Term Deposit interest rate by 15 points to 3.90% and its eighteen month term deposit interest rate by 20 points to 4.30% as of 16 March 2023
• ING announced rate rises to a range of term deposits, varying from 10 to 30 points, with the new highest rates being 4.40% for 1 and 2-year term deposits, effective 14 March 2023.
• ANZ will offer a new 12-month Advance Notice term deposit rate of 4.40% effective 14 March 2023.
• Commonwealth Bank will increase the 12-month term deposit special to 4.35%, effective 17 March 2023.
• NAB term deposits will increase across a range of terms, by up to 110 points, effective 17 March 2023. The 12-month term will increase to 4.20%.
• Westpac is offering a current 12-month term deposit offer of up to 4.35% for Westpac customers who open or renew online.
• Macquarie's 12-month term deposit interest rate is 4.35%, available now.

Keep in mind that term deposit customers may need to wait for their existing deposit to reach maturity and roll over before they can consider switching to a higher rate. Comparing term deposits can help you work out which options may offer you the most value.

Keep an eye on RateCity’s Rate Tracker hub for more information on which banks are raising rates for borrowers and savers.

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