Westpac bows to pressure, announcing savings rates hikes

Westpac has this afternoon announced it will be increasing the rates on select savings accounts, effective 20 June, following last week’s RBA rate hike announcement.

The bank had previously remained silent on what it intended to do for its customers with a savings account.

In today’s announcement, Westpac has said it will increase its Life account with the full 0.25% points. However existing eSaver customers have missed yet again, with their rate remaining at 1.10%.

The bank has also increased its Spend&Save rate, for Australians aged 18 – 29, to a healthy 5.20%, provided customers meet certain terms and conditions.

Westpac savings rate changes – effective Tuesday 20 June

Source: RateCity.com.au. Note: terms and conditions apply for some maximum rates.

Big four bank savings account rates post RBA 

Source: RateCity.com.au. Note: Westpac rates effective 20 June.

RateCity.com.au research director, Sally Tindall, said: “The big four banks have now all declared their hands, but it’s a mixed bag depending on who you bank with, which account you have, and your time as a customer.”

”Westpac has the highest and lowest ongoing savings rates out of the big four banks, serving up a competitive 5.20 per cent for young adults yet a miserable 1.10 per cent for existing eSaver customers,” she said.

“If you’re a longsuffering eSaver customer, know you are getting fleeced.

“A rate of 1.10 per cent is not something you should cop on the chin. Spend half an hour looking at better options and an extra ten minutes opening a new account. You should start seeing the benefits of a higher savings rate straight away,” she said.

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