Boost your savings with rates above 5% in June 2023

The Reserve Bank of Australia (RBA) increased the cash rate to 4.10% in June. There are several savings accounts offering more than 5% interest and these could likely swell further if banks pass on the latest hike. 

Savings rates have rarely been this high over the past decade. If you have the ability to set some cash aside, now may be an ideal time to do so in order to take advantage of this attractive opportunity.

Australia’s central bank has raised rates twelve times since May 2022, only pausing once in April 2023 to evaluate the economic landscape and review its efforts to alleviate the headache of high inflation.

At the time of writing, RateCity lists nine different banks offering ongoing rates of 5.00% or higher:

Source: RateCity.com.au data accurate as of 06/06/2023. Monthly conditions apply for max rate. Excludes kids savings accounts. *Bank has yet to adjust rates in response to the RBA’s latest announcement.

It’s important to be aware that the leading rate, offered by the Bank of Queensland, is exclusively available to customers aged 14 to 35 years on balances up to $50,000. Other institutions, such as Bendigo Bank and Westpac offer similar, age-restricted products.

For this reason, it’s sensible to consider more than just the maximum interest rate. Examine savings account fees, minimum and maximum balances and other features - such as introductory and bonus interest terms - to find an account that suits your financial goals.

Your savings are an essential safety net that can help you in emergencies, enjoy luxuries, and live a comfortable life when you’re no longer working. But working out how much savings you really need will depend on multiple factors.

There is no single best savings account as everyone’s needs are different. To get a better idea of which accounts may provide the most value for your money, you could consider comparing their Real Time Ratings™, to evaluate interest and flexibility scores.

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