Savings rates inch north as CBA and ANZ hike select accounts

CBA and ANZ have both hiked select savings accounts today by up to 0.30 percentage points.

Australia’s largest bank has increased the introductory rate on its popular NetBank Saver account by 0.30 per cent, however, this will only benefit new customers for the first five months.

CBA savings changes

Source: RateCity.com.au

Australia’s fourth largest bank, ANZ, has today increased rates on two of its most popular savings accounts, its Progress Saver and Online Saver, by 0.25 percentage points.

The bank has also increased the rate on its Pensioner Advantage account to a new maximum rate of 0.35 per cent, however, this rate is only for balances over $50,000.

ANZ savings changes – contact us for pensioner account changes

Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts.

Savings rate changes since the June cash rate hike:

• 37% of banks on the RateCity.com.au database have, to date, increased the rate on at least one savings account following the June RBA hike (58% of banks increased rates following the May hike).
• 3.00% is currently the highest rate for young adults from Bank of Queensland.
• 2.10% is currently the highest ongoing savings rate for all adults from ING.

RateCity.com.au research director, Sally Tindall, said: “Savings rates are finally crawling north, but it’s happening at a snail’s pace.”

“After each cash rate hike, there are banks lifting rates on some accounts but not all, other banks opting to pass on just part of the hike, while a handful have skipped over their existing customers entirely,” she said.

“The RBA is poised to put a rocket under the cash rate, with many economists predicting it will climb to over 2 per cent by the end of this year.

“This should be good news for savers, however, based on what we’ve seen so far, most existing customers are unlikely to reap the full benefit of these hikes.

“Savings rates might finally be on the rise, but inflation is streaks ahead. After the May and June RBA hikes, the average ongoing savings rate on our database is under 0.5 per cent, while headline inflation is 5.1 per cent and still on the rise.

“In this environment, where the rate hikes are coming thick and fast, savers would do well to give their account a health check at least every other month to make sure their bank is doing right by them.

“If not, it could be time to move to a more competitive rate.

“Savings rates aren’t likely to outpace inflation for months, if not years, however, people can limit the damage by shopping around,” she said.

Big four banks – ONLINE SAVERS

Source: RateCity.com.au.

Big four banks – BONUS SAVERS

Source: RateCity.com.au. Conditions for max rate apply.

Highest ongoing savings rates on RateCity.com.au

Source: RateCity.com.au. Monthly conditions apply for max rate.

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