New highest savings rate of 5.70% hits the market

A new highest savings rate has hit the market, with MOVE Bank today increasing its Growth Saver account by 0.20 percentage points to a maximum ongoing rate of 5.70 per cent.

This new rate puts MOVE Bank at the top of the table for the highest ongoing savings rate, leading by 0.15 percentage points.

Customers can access this rate on an ongoing basis provided they deposit $200 into the savings account every month and make no withdrawals. The catch, for some, will be that it’s only available on balances of up to $25,000.

Highest ongoing savings rates on RateCity.com.au

(excludes kids accounts)

Source: RateCity.com.au. *Account from Teachers Mutual is also offered by subsidiaries Health Professionals, Firefighters Mutual, UniBank and Hiver. Excludes kids accounts.

While MOVE Bank is passing on the majority of the RBA November cash rate hike to this account, hundreds of other savings accounts have not yet moved a muscle.

The RateCity.com.au database shows just 40 per cent of all savings accounts have, to date, risen following the RBA’s decision to increase the cash rate on 7 November.

Among these, some accounts, such as Westpac, NAB and ANZ’s online saver accounts, have seen a boost to the introductory rate, but no increase to the ongoing rate, which can, in the case of Westpac’s eSaver account, be as little as 1.10 per cent.

RateCity.com.au research shows that if a customer moved $20,000 of savings from Westpac’s eSaver account to MOVE Bank’s Growth Saver, on that $20,000, they could potentially earn an extra $949 in interest over the next 12 months.

This assumes there are no further rate changes to each account.

Interest saved on a balance of $20,000 for MOVE Bank Growth Saver vs Westpac eSaver

Source: RateCity.com.au Note: assumes monthly terms and conditions are met for max available interest on highest savings account. Assumes Westpac customer is on ongoing rate. Does not factor in extra deposits, withdrawals or future rate changes.

RateCity.com.au research director, Sally Tindall, said: “MOVE Bank is the first of the market leaders to increase their highest ongoing savings rate following this latest RBA hike – something they should be congratulated for.”

“The market leaders in the savings sector have been deathly quiet over the last three weeks. Finally, we’ve now got one bank willing to pass on the majority of this latest rate hike,” she said.

“Hopefully this will be the nudge other banks offering high-interest savings accounts need.

“An ongoing rate of 5.70 per cent is impressive, however, the balance cap of $25,000 on the MOVE Growth Saver may prove to be impractical for some.

“Savers signing up to this account should also be across the fine print that comes with this rate. One foot wrong in a month and you could see your interest rate plummet to just 0.10 per cent for the next 30 or so days.

“If you want your money to put up a decent fight against inflation, take an hour out of your summer to find yourself a competitive savings rate that suits your goals and your financial lifestyle.

“Savings accounts often come with a surprising amount of fine print, but once you’re across it you’re likely to be ready and willing to squeeze the most out of your bank and your nest egg,” she said.

Savings rates state of play post-November RBA cash rate hike

RateCity.com.au research shows, following the RBA’s cash rate hike on 7 November:

• 49% of banks have so far made savings rate changes to just 40% of all savings accounts.
• 5.75% is the highest savings rate in the market, available from Rabobank. However, this is a honeymoon rate for the first 4 months, after which time it drops to a relatively uncompetitive ongoing rate of 4.40 per cent.
• 5.70% is the highest ongoing savings rate from MOVE Bank’s Growth Saver. This requires savers to deposit $200 or more into the savings account and make no withdrawals.
• 5.50% is the highest ongoing savings rate with no strings attached, from Australian Unity.
• 5.00% is the highest big four bank ongoing savings rate for all adults, however, monthly conditions apply. This is from Westpac and NAB. Westpac also offers a rate of 5.20% to customers aged 18 to 29.

Compare savings accounts