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Here's how much you could earn with the new highest savings rates

Here's how much you could earn with the new highest savings rates

06 Jun, 2023 - 3 min read

The Reserve Bank of Australia has hiked the cash rate yet again by 25 basis points to 4.10%. Savers will be curious as to how much more of an impact that higher rates could make on their savings balances.

One of the few silver linings about rising interest rates is that Australian savers can earn a greater return on their nest eggs again.

Prior to these cash rate hikes, savers were more likely to be earning interest rates starting with a 1, or even a zero. The highest savings account on the RateCity at the time of publishing is 5.25% from the ING Savings Maximiser and MOVE Bank Growth Saver.

And thanks to this latest cash rate hike, rates could climb even higher for savers. RateCity research shows that by utilising the highest savings rates on its database, a customer could be able to save $2,815 in interest in just 12 months.

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What are the highest savings account rates?

If you’re in the market for a higher rate on your savings account, it is worth comparing your options. Just keep in mind that there is more to a savings account than the interest offered, and it’s important to also compare factors like fees and account conditions, as well as innovative fintech you can access through the account.

At the time of writing, these are the savings accounts with the highest interest rates available on the RateCity database.

Bonus savers – market leaders for all adults

Savings account	Max rate
ING Savings Maximiser	5.25%
MOVE Bank Growth Saver	5.25%
Virgin Money Boost Saver	5.10%

Source: RateCity.com.au. Conditions for max interest rate apply. Data accurate as of 06/06/22.

Bonus savers – market leaders for young adults

Savings account	Max rate
BOQ Future Saver	5.30%
Great Southern Bank Goal Saver	5.10%
Westpac Spend&Save	5.00%

Source: RateCity.com.au. Conditions for max interest rate apply. Data accurate as of 06/06/22.

Savings accounts with no monthly conditions

Savings or Bank account	Max rate
ANZ Plus	4.50%
Macquarie Bank Transaction account	4.25%

Source: RateCity.com.au. Data accurate as of 06/06/22.

How much you could earn with the highest savings rates

RateCity has crunched the numbers to determine how this latest cash rate hike could impact savings rates.

At the time of writing, the highest ongoing adult interest rate on a savings account was 5.25% from the ING Savings Maximiser and MOVE Bank Growth Saver. Assuming that this provider passes on the latest cash rate hike, the new highest rate may be 5.50%.

After 12 months, a saver with a starting balance of $50,000 using this account may earn $2,815 in net interest. This assumes regular deposits of at least $1 each month, and does not factor in future rate changes.

For comparison, we’ve also looked at how much you may earn on a $50,000 balance if you were currently on the average big four bank bonus savings account rate of 4.35%. With the same conditions mentioned above, a saver would only earn $2,344 in interest over 12 months.

This is a difference of an extra $471 in your savings nest egg, just by considering a higher-rate interest account (assuming all conditions are met).

	Highest savings account	Big four bank conditional account
Opening balance	$50,000	$50,000
Interest earned	$2,815	$2,344
Closing balance	$52,815	$52,344

Source: RateCity.com.au. Data accurate as of 06/06/2023.

Compare savings accounts

Product database updated 23 Dec, 2024

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

Alex Ritchie

Personal Finance Editor

Alex Ritchie was a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over six years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.