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New highest savings rate hits 5.15%, but there’s a catch

New highest savings rate hits 5.15%, but there’s a catch

03 Mar, 2023 - 4 min read

Savings accounts have broken the 5 per cent barrier, with Bank of Queensland posting a rate of 5.15 per cent, effective today.

This is the new highest savings rate, excluding kids accounts.

The catch? The rate is exclusive to customers aged 14 to 35 years with a Future Saver account on balances up to $50,000.

This is the second increase to BOQ’s Future Saver in less than two weeks. This second hike comes just four days out from the RBA’s March board meeting.

The move puts pressure on other savings market leaders to pass on a rate hike next week if the RBA pulls the trigger on another 0.25 percentage point increase as expected.

The bank is also increasing its Smart Saver by 0.35 percentage points to 4.60 per cent for all adults.

BOQ savings rate changes: effective 3 March

Account	Old max rate	New max rate	Change
Future Saver (14-35)	4.90%	5.15%	+0.25%
Smart Saver	4.25%	4.60%	+0.35%

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

Another rate hike could see more savings rates of 5 per cent or more in March

RateCity.com.au database shows four banks currently have ongoing rates of 4.75 per cent or more, including ING and MOVE Bank for all adults, and BOQ and Great Southern Bank for young adults (excluding kids accounts).

Another 0.25 percentage point hike next week could see more ongoing savings rates climb to 5 per cent and above.

Highest ongoing savings rates on RateCity.com.au

All adults	Max rate	Balance for max rate
ING Savings Maximiser	4.80%	$100,000
MOVE Bank Growth Saver	4.75%	$25,000
Great Southern Bank Home Saver	4.65%	$100,000
Virgin Money Boost Saver	4.60%	$250,000
Young adults	Max rate	Balance for max rate
BOQ Future Saver (14-35)	5.15%	$50,000
Great Southern Bank Goal Saver (18-24)	4.75%	$50,000
Police Bank U30 Super Charge (18-29)	4.50%	$10,000
Westpac Spend&Save (18-29)	4.35%	$30,000

Source: RateCity.com.au. Monthly conditions apply for max rate. Excludes kids savings accounts.

However, not all banks are passing on full hikes to their savings customers. RateCity.com.au’s database shows:

30 banks have passed on the full 3.25%-point RBA hikes (or more) to at least one savings account.
44 banks’ highest savings rates for all adults are still below the current cash rate of 3.35%.
The big four bank’s ongoing online saver rates are still between 0.85% and 1.60%, despite an increase to the cash rate of 3.25%.

RateCity.com.au research director, Sally Tindall, said: “BOQ has bolted out of the gates early with a pre-RBA hike, four days before the Board has even met. That’s not something you see every day in the savings account sector.”

“This move by Bank of Queensland puts pressure on the market leaders to pass on whatever the RBA serves up on Tuesday,” she said.

“While some savings accounts are surging ahead, many others remain set in neutral, despite the incessant cash rate hikes.

“For example, the big four banks are now offering ongoing rates of 4 per cent or more, yet for a signficant subset of their customers, they’re still coughing up rates between 0.85 per cent and 1.60 per cent. That’s nowhere near good enough.

“If you’ve got cash stashed in the bank that’s earning less than the cash rate, rattle the cage by switching.

“The upcoming ACCC inquiry has put the banks on notice, but the one thing that’s really going to get their attention is if customers start jumping ship in droves,” she said.

Compare savings accounts

Product database updated 02 Mar, 2025

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

Laine Gordon

Money Editor

Laine Gordon is the Money Editor at RateCity and an experienced journalist and research specialist. With a background in news and feature writing, covering finance, media and even food (a passion of hers) at Reed Elsevier publications, Laine brings almost two decades of experience to the team. Having covered major areas of interest to the general public from hip pocket issues to rising and falling interest rates and the impact to mortgages, credit and saving in Australia, she is passionate about researching and telling people’s stories to help others make better decisions about their own finances.