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Parliamentary inquiry into major banks set to scrutinise savings rates
Australia’s major banks’ savings rates are set to come under fire from tomorrow as they front the House of Representatives Standing Committee on Economics.
ANZ and NAB will appear tomorrow (12 July), while CBA and Westpac will appear on Thursday (13 July).
Since the start of the cash rate hikes in May 2022, the major banks have passed on the rises in full to variable mortgage customers. However, not all savings accounts have received the same treatment.
Major banks ‘pick and choose’ savings account increases
While Australia’s cash rate has risen by 4 percentage points in just over 14 months, the ongoing rates on the major banks’ online saver accounts have only risen by between 1.05 and 2.15 percentage points in this time.
As a result, some savers have missed out on up to 2.95 percentage points.
Big four bank online saver account rates – pre hikes vs today
| Name | Rate 1 May 2022 | Current rate | Increase to ongoing rate |
| CBA NetBank Saver | 0.25% for 5 mths then 0.05% | 4.75% for 5 mths then 2.20% | +2.15% |
| Westpac eSaver | 0.25% for 5 mths then 0.05% | 4.75% for 5 mths then 1.10% | +1.05% |
| NAB iSaver | 0.30% for 4 mths then 0.05% | 4.75% for 4 mths then 2.00% | +1.95% |
| ANZ Online Saver | 0.15% for 3 mths then 0.05% | 3.40% for 3 mths then 1.60% | +1.55% |
Source: RateCity.com.au
Bonus saver accounts fairing much better
While big four bank customers with an existing online savings account are getting fleeced, all four banks have passed more than the RBA’s four percentage point rise to their bonus saver customers, provided they meet the monthly terms and conditions.
While Westpac and NAB are now offering ongoing rates as high as 4.75 per cent, they are still 0.75 percentage points below the market leading ongoing savings rates at 5.50 per cent.
Big four bank bonus saver account rates – pre hikes vs today
| Name | Max ongoing rate 1 May 2022 | Max ongoing rate today | Increase | Conditions |
| CBA GoalSaver | 0.25% | 4.65% | +4.40% | Grow balance each mth otherwise base rate of 0.40% |
| Westpac Life | 0.25% | 4.75% | +4.50% | Grow balance each mth otherwise base rate of 2.00% |
| NAB Reward Saver | 0.25% | 4.75% | +4.50% | 1+ dep, no withdrawal/mth otherwise base rate of 0.35% |
| ANZ Progress Saver | 0.15% | 4.25% | +4.10% | $10+ dep, no withdrawal/mth
otherwise base rate of 0.01% |
| OTHER | ||||
| Westpac Spend&Save
(18-29 yrs) | 2.00% | 5.20% | 3.20% | Grow balance each mth. 5+ purchases on linked account otherwise base rate of 2.00% |
| ANZ Plus Save (15 yrs+) | 0.50% | 4.65% | 4.15% | None |
Source: RateCity.com.au
Big four bank savings account rates – compared to the cash rate
Source: RateCity.com.au
Highest ongoing rates for savings customers
The highest savings rates available sit well above those offered by the big four banks, with ING, BOQ and MOVE Bank offering the highest ongoing rates at 5.50 per cent.
Macquarie Bank is offering new customers an introductory rate of 5.55 per cent, however this lasts for just four months, after which it drops to 4.50 per cent.
Highest five ongoing savings rates on RateCity.com.au
| Account | Max ongoing rate | Base Rate | Max balance for max rate | Monthly conditions |
| ING Savings Maximiser | 5.50% | 0.55% | $100,000 | $1000+ dep and 5+ purchases on linked bank account. Grow savings balance |
| BOQ Future Saver (ages 14 – 35) | 5.50% | 0.05% | $50,000 | $1000+ dep and 5+ purchases on linked bank account. Grow savings balance. Waived if under 18. |
| MOVE Bank Growth Saver | 5.50% | 0.10% | $25,000 | $200+ dep into savings, no withdrawals. |
| Virgin Money Boost Saver | 5.35% | 0.05% | $250,000 | $1000+ dep and 5+ purchases on linked bank account. Grow savings balance and provide 32 days’ notice to access funds |
| Great Southern Goal Saver (18-24) | 5.35% | 0.50% | $250,000 | $500+ dep and 5+ purchases on linked bank account. Grow savings balance. |
Source: RateCity.com.au
RateCity.com.au research director, Sally Tindall, said: “One silver lining to come out of the cash rate hikes is the fact that many savers have seen their rates rise out of the doldrums.”
“However, big four bank customers can’t just automatically assume they’ve been getting each and every rate hike in full,” she said.
“While the big banks have increased some savings rates by more than the RBA hikes, which is fantastic, millions of customers with online saver accounts are on ongoing rates that are around half, if not a quarter of the current cash rate. That’s about as far from fantastic as it can get.
“With monthly conditions to qualify for bonus interest, balance caps, age restrictions, introductory rates and reems of fine print, savings accounts have been purposefully designed to catch some customers out.
“The big four banks should consider simplifying their savings account options to make it easier to understand and navigate for all customers, instead of the survival of the fittest approach they’ve adopted thus far,” she said.
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Product database updated 19 Nov, 2024
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