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RBA likely to hike by 0.50% but how much will the banks pass onto savers?
The Reserve Bank is expected to hike the cash rate by 0.50 percentage points today, but banks are unlikely to pass on this rate hike in full to every customer.
The big four banks passed on the full 0.50 percentage point June RBA to their existing mortgage customers. However, not all of their savers saw the full increase.
For example, Australia’s biggest bank, CBA, passed on 0.50 percentage points to its GoalSaver and YouthSaver customers, but on its NetBank Saver it only increased the introductory rate by 0.30 percentage points, only benefiting new customers for the first five months.
Meanwhile, NAB increased its Reward Saver by 0.25 percentage points following the May hike, however, after the June hike it left it unchanged.
Big four bank bonus savings accounts – what they’ve done over the last two RBA hikes (0.75% in total)
| Big four account | Change to max rate since April |
| CBA GoalSaver | 0.50% |
| Westpac Life | 0.60% |
| NAB Reward Saver | 0.25% |
| ANZ Progress Saver | 0.50% |
Source: RateCity.com.au.
RateCity.com.au analysis shows that while the big four banks on average increased their ongoing savings rates by 0.46 percentage points, over the last two hikes (May + June), a number of banks have matched, and in some cases gone beyond the RBA:
- ING hiked its Savings Maximiser by 0.75 percentage points to 2.10%.
- BOQ has hiked its Future Saver for young adults by 1.00% to 3.00%.
- Suncorp Bank hiked its Grow Saver by 0.70% to 1.30%.
- Macquarie Bank hiked its transaction account by 1.30% to 1.50%.
RateCity.com.au research director, Sally Tindall, said: “While the banks haven’t hesitated to pass on the RBA rate hikes in full to home loan customers, it’s a different story for savers – they’ve been picking and choosing who they pass it on to and how much.”
“What the banks decide to pass on and when, has been a bit of a dog’s breakfast,” she said.
“As the RBA hikes keep rolling in, savers should make sure they get their fair share.
“If your bank hasn’t passed on the full hikes, pick up the phone, email or even tweet them and ask why?
“NAB Reward savings customers, in particular, have not seen substantial changes to their rate, which has only gone up 0.25 percentage points since the start of the hikes.
“While many savers have missed out, a few notable banks have gone above and beyond the RBA, including Bank of Queensland on its Future Saver and Smart Saver accounts, and while Macquarie is shaking up the market by hiking its transaction account by 1.30 percentage points.
“In this market, finding a savings rate that keeps up with inflation is virtually impossible. However, check your account every two months to make sure you’re getting the best deal,” she said.
Highest ongoing savings rates on RateCity.com.au
| Bonus saver accounts: Max rates | ||
| Market leaders | Balance for max rate | |
| ING Savings Maximiser | 2.10% | $100,000 |
| BOQ Smart Saver Account | 2.00% | $250,000 |
| Virgin Money Boost Saver | 2.00% | $250,000 |
| Young adults market leaders | ||
| BOQ Future Saver (14-35) | 3.00% | $50,000 |
| Westpac Spend&Save (18-29) | 2.50% | $30,000 |
| Police Bank U30 Super Charge Account | 2.00% | $10,000 |
Source: RateCity.com.au. Monthly conditions apply for max rate.
Big four banks – BONUS SAVERS
| Bank | Account | Max rate |
| CBA | GoalSaver | 0.75% |
| Westpac | Life | 0.85% |
| NAB | Reward Saver | 0.50% |
| ANZ | Progress Saver | 0.65% |
Source: RateCity.com.au. Conditions for max rate apply.
Big four banks – ONLINE SAVERS
| Bank | Account | Max intro rate | Ongoing rate |
| CBA | NetBank Saver | 0.80% for 5 mths | 0.30% |
| Westpac | eSaver | 0.75% for 5 mths | 0.05% |
| NAB | iSaver | 0.80% for 4 mths | 0.30% |
| ANZ | Online Saver | 0.40% for 3 mths | 0.30% |
| ANZ Plus | Save | N/A | 1.50% |
Source: RateCity.com.au.
Disclaimer
This article is over two years old, last updated on July 5, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent savings accounts articles.
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