Big four bank RBA wrap – the winners and losers

While the big four banks have announced they will pass on the full RBA rate hike to their variable mortgage customers, many savers have, so far, missed out.

The big four bank variable mortgage rates for new and existing customers will increase by 0.25 percentage points, in line with yesterday’s RBA hike.

Big four banks lowest variable rates - post October RBA

Owner-occupiers paying principal and interest

Source: RateCity.com.auNote some loan-to-value ratios apply. New variable rates effective 14-18 October.

RateCity.com.au analysis shows so far six lenders made their RBA mortgage rate announcements – the big four banks, Macquarie Bank and Suncorp, however, more banks are likely to announce today. A live list is here.

Big four bank report card for savers:

1. CBA is top of the class this month. It’s hiking all of its key savings accounts, in many cases, by more than 0.25 percentage points.
2. Second is Westpac. The bank has increased its bonus saver rates for both adults and young adults and the intro rate on its eSaver, however, these existing customers miss out.
3. ANZ comes in third. It has only increased one rate – its Plus Save account is rising to a competitive 3.25 per cent.
4. NAB, at this stage, comes in last. The bank is yet to announce any hikes for its savers.

What the big four banks have announced so far for existing savers

Source: RateCity.com.au

While CBA, in particular, is hiking savings rates across the board, what ultimately matters for customers is the rate they’ll be getting. In many cases, the big four bank ongoing rates are still below the current cash rate.

ONLINE SAVERS: big four bank existing customer rates post Oct RBA

Source: RateCity.com.au. CBA rate effective 14 Oct, ANZ Plus rate effective 12 October.

BONUS SAVERS: Big four bank rates post Oct RBA

Source: RateCity.com.au. Conditions may apply for max rate. CBA rate effective 14 Oct. Westpac rate effective 18 Oct.

Key changes to interest rates so far from market leaders

• Macquarie is increasing the ongoing rate on its transaction and savings account by 0.45% points to 3.20% from 14 Oct. The intro rate will be 4.00% for 4 months, effective tomorrow.
• ubank is increasing its Save account by 0.25% points to 3.60% from 1 Nov.
• 5 banks have, so far, announced they will hike at least one savings account this month, with more expected tomorrow. A live list is here.

RateCity.com.au research director, Sally Tindall, said: “CBA and Macquarie are, so far, top of the class this month when it comes to savings rate rises.”

“Millions of CBA savings customers will be getting a sizeable boost to their interest rate this month, with the bank hiking many of its accounts beyond the RBA rise,” she said.

“However, this doesn’t automatically mean CBA savers are on a competitive rate. In most cases, its savings customers are still earning less than the cash rate.

“Savers have turned from a liability for the banks into a sought-after commodity. Many of the rate hikes we’ve seen from the banks this month are designed to bring in new business.

“That’s because deposits are becoming an increasingly attractive source of funding for home loans – great news for savers who could see further rises in the months to come.

“We expect a competitive ongoing savings rate will be over 3.5 per cent after these hikes filter through

“NAB is still staying mum as to what it intends to do for its savers.

“If you’ve got a savings account with NAB, get on the phone or social media, and push the bank for a decision. If the bank knows customers care about their rates, it could help sway the outcome.

“While the RBA has taken the size of the rate increases down a notch, borrowers shouldn’t assume the hikes will fizzle out soon.

“There are more hikes to come. There’s a chance the cash rate could still rise by a further one percentage point, so borrowers need to be prepared,” she said.

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