What will happen to savings accounts when interest rates fall? Some of the top-rated savings accounts in November 2024

Putting part of your money into a savings account is traditionally one of the simplest ways to protect and grow your wealth. But how does this work if interest rates start falling?

Savings account interest rates are affected by many different factors, including the national cash rate set by the Reserve Bank of Australia (RBA). When the RBA raises the cash rate to take on inflation, banks and other Authorised Deposit-taking Institutions (ADIs) typically pass this rate on to their deposit holders, including their customers with savings accounts and term deposits.

However, economists from the big four banks are forecasting that the RBA could start an easing cycle starting in February 2025, which could see interest rates fall by a full percentage point over that year. This could potentially mean that Australians may get less value from their savings accounts if they start earning less interest on their wealth.

Some ADIs are already making interest rate moves in anticipation of future interest rate announcements. For example, ME Bank recently reduced its market-leading savings account bonus rate in an out of cycle rate cut.

But there are still a range of savings account options available for Australians looking for a place to secure and grow their savings. Finding a savings account interest rate that’s higher than the current inflation rate (which has been falling) can help to keep your money from going backwards, though you’ll also need to consider taxes on your interest income.

Because there’s more to a savings account than just the interest rate, RateCity’s Real Time Ratings™ combine the interest and flexibility offered by different savings accounts to better indicate their overall value. You can also narrow down your savings account comparison by looking at the savings accounts ranked in different categories on RateCity’s Savings Account Leaderboards.

(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)

Compare savings accounts

Provider

Real Time Rating™Maximum rate p.a.Base rate p.a.Maximum rate condition

4.75%

intro 5 months then 1.35%*

1.00%

*Available for new accounts opened online by ne...

eSaver

• Bonus interest with conditions
• Intro offer rate
• App banking
• Online banking

3.75%*

0.01%

*Make a single deposit of $10 or more and no wi...

Progress Saver

• Bonus interest with conditions
• App banking
• Online banking

1.15%

1.15%

Not applicable

Online Saver

• App banking
• Online banking
• Linked account required

4.75%*

1.60%

*Ensure your account balance is higher at the e...

Life

• Bonus interest with conditions
• App banking
• Online banking
• Linked account required

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