Which banks have hiked term deposit and savings account rates in October 2022?

The October 2022 meeting of the Reserve Bank of Australia (RBA) saw the national cash rate rise by just 25 basis points. While the RBA may be starting to slow the pace of its rate rises, several leading banks and Authorised Deposit-taking Institutions (ADIs) have been quick to announce increases to their interest rates for savers.

Combined with the 25-point rate hike back in May 2022 and the following four 50-point increases, the latest hike has raised the national cash rate from its record low of 0.10% to 2.60%; its highest point since 2013. While the RBA has said that more rate rises will be required to help combat the “scourge” of high inflation, some economists are forecasting that the RBA will slow down its rate rises before putting the cash rate on pause to assess its effect on inflation and Australia’s economy.

Banks that have so far announced increases to their savings account rates include:

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. 

While several ADIs have announced larger rate increases for savings accounts than the RBA’s 25 points, not as many have yet released information for term deposit customers, other than to say that their term deposit rates are “continually under review.”

Exceptions include:

• Commonwealth Bank, which announced it would increase its 12-month Term Deposit by 1.35% to 3.35% and its 18-month Term Deposit special to 3.70% effective 10 October 2022
• Newcastle Permanent, which announced it would increase its 12-month term deposit offer to 3.65%. 
• Greater Bank, which announced it would raise the rate on term deposit accounts of three months by 0.50% to 2.10%, term deposit accounts of 12 and 24 months by 0.25% to 3.50%, and term deposit accounts of six- and seven-months by 1.00% to 2.75%.

Remember that if you already have savings in a term deposit, you may need to wait until your deposit reaches maturity before you can look at switching to an alternative option to benefit from rising rates. 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 rate for borrowers and savers.

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