New highest ongoing savings rate hits 4.80%

ING has today announced it will be increasing the interest rate on its Savings Maximiser to 4.80 per cent – the new highest ongoing savings rate in the market for all adults.

This move by ING puts pressure on other savings market leaders, including Virgin Money and Bank of Queensland, to pass on the RBA’s 0.25 percentage point increase to customers.

The bank will also increase its Savings Accelerator, as well as variable home loan rates by 0.25 percentage points, effective 14 February.

ING savings rate changes: effective 14 February

Source: RateCity.com.au. Notes: terms and conditions apply for max rate on both accounts.

NAB announces savings changes

Australia’s third largest retail bank has today announced its savings changes on the back of Tuesday’s RBA hike.

Unsurprisingly, NAB will match CBA and Westpac by lifting the maximum ongoing rate on its bonus saver account, Reward Saver, to 4 per cent - an increase of 0.75 percentage points.

It’s iSaver account will increase by 0.25 percentage points for both new and existing customers.

NAB savings rate changes: effective 17 February

Source: RateCity.com.au. Notes: terms and conditions apply for max rate on both accounts.

RateCity.com.au research director, Sally Tindall, said: “Over the last six months, ING has been one of the most consistent performers when it comes to passing on rate hike to its savings customers.”

“This is great news for customers with a Savings Maximiser account, but also for competition in the savings sector because it puts pressure on other banks to follow suit,” she said.

“At 7.80 per cent, inflation is still streaks ahead of even the highest savings rates, however, the gap between the two is finally starting to close.

“If the Reserve Bank issues at least two more cash rate hikes and inflation comes back down, as expected, we could see the highest savings rates surpass inflation within the year.

“Meanwhile, Australia’s third largest retail bank has matched its big bank competitors, posting one ongoing rate of 4 per cent for its Reward Saver customers.

“The big banks can’t help themselves. They’re willing to boost one account but only at the expense of another. It’s a practice that’s unlikely to stop unless customers start voting with their feet by switching,” she said.   

Current highest ongoing savings rates

Source: RateCity.com.au. Note: ING rate effective 14 February 2023

Big four bank savings rates – post February RBA hike

Source: RateCity.com.au. CBA rates effective 10th February. Westpac Life and eSaver rates effective 21st February. NAB rates effective 17th February. ANZ Plus Save rate effective 14th February.

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