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Savings rates with no strings attached crack 5.50%
Australian Unity has today increased the rate on its Freedom Saver account by 1.25 percentage points to an ongoing rate of 5.50 per cent for balances of up to $50,000.
This is the new highest ‘fuss free’ savings rate in the market – that is, of those accounts with no monthly terms and conditions to qualify for the maximum rate or short-term welcome rates.
It’s also one of the highest ongoing savings rates, even when including accounts with bonus rates for meeting monthly terms and conditions.
Highest ongoing savings rates with no strings attached
| Account | Highest ongoing rate | Max balance for highest rate |
| Australian Unity Freedom Saver | 5.50% | $50,000 |
| Unity Bank MoneyMAX | 4.90% | No limit |
| ANZ Plus Save | 4.90% | $250,000 |
| BOQ Simple Saver | 4.85% | $5 million |
| Macquarie Bank Savings account | 5.50% for 4 mths then 4.75% | $1 million |
Source: RateCity.com.au. Note: excludes kids accounts.
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:
- 35% of banks have so far made savings rate changes to just 23% 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.
- 5.55% is the highest ongoing savings rate from ME Bank’s HomeME. This requires savers to deposit $2,000 or more into a linked bank account, and grow their savings balance each month.
- 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.
Highest ongoing savings rates on RateCity.com.au
| Account | Max ongoing rate | Max balance for max rate | Monthly conditions for max rate |
| ME Bank HomeME | 5.55% | $100,000 | Deposit $2k+ into linked bank account and grow savings balance / mth. |
| Australian Unity Freedom Saver | 5.50% | $50,000 | None |
| Teachers Mutual Bank* | 5.50% | $5,000,000 | Deposit $1k+ into linked bank account, make no withdrawals / mth. |
| ING Savings Maximiser | 5.50% | $100,000 | Deposit $1k+ and make 5+ transactions in linked bank acct, plus grow savings balance / mth. |
| MOVE Bank Growth Saver | 5.50% | $25,000 | Deposit $200 into to savings account and make no withdrawals / mth. |
Source: RateCity.com.au. *Account from Teachers Mutual is also offered by subsidiaries Health Professionals, Firefighters Mutual, UniBank and Hiver. Excludes kids accounts.
RateCity.com.au research director, Sally Tindall, said: “Keen savers have typically had to jump through hoops to qualify for a competitive savings rate, by either meeting a stringent set of monthly terms and conditions, or hopping from one introductory rate to another. Not anymore.”
“Australian Unity has leap frogged its rivals, posting an impressive savings rate of 5.50 per cent. Even better, the rate you see is the rate you’ll get, provided your balance is under $50,000,” she said.
“Currently, four of the five highest ongoing savings rates have convoluted terms and conditions to qualify, but today, there’s now one that doesn’t.
“Across the board, the response to the November cash rate hike has been disappointing at best. The RateCity.com.au database shows just 23 per cent of savings accounts have seen an increase to their interest rates, and even then, often it’s been to a bonus rate or a welcome rate, that not every customer with that account will qualify for.
“Savers looking for a decent rate without the worry of having to meet intricate terms and conditions have previously had to make concessions when it comes to rates. This move from Australian Unity changes the playing field for these customers” she said.
Big four bank savings account rates
| BONUS SAVERS | ||
| Account | Max rate | Conditions for max rate |
| CBA GoalSaver | 4.90% | Grow balance each mth |
| Westpac Life | 5.00% | Grow balance each mth |
| NAB Reward Saver | 5.00% | 1 deposit, no withdraw / mth |
| ANZ Progress Saver | 4.25% | $10+ dep, no withdraw/mth |
| ONLINE SAVERS | ||
| Account | Rate | Conditions for max rate |
| CBA NetBank Saver | 5.10% for 5 mths then 2.35% | No conditions |
| Westpac eSaver | 5.00% for 5 mths then 1.10% | No conditions |
| NAB iSaver | 5.00% for 4 mths then 2.00% | No conditions |
| ANZ Online Saver | 3.65% for 3 mths then 1.50% | No conditions |
| OTHER | ||
| Account | Max rate | Conditions for max rate |
| ANZ Plus Save (15 yrs+) | 4.90% | None |
| Westpac Spend&Save
(18-29 yrs) | 5.20% | Grow bal each mth. 5+ purchases on linked account. |
Source: RateCity.com.au
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Product database updated 18 Dec, 2024
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