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RateCity reveals the banks offering the best deposit rates for pensioners

RateCity reveals the banks offering the best deposit rates for pensioners

12 Mar, 2020 - 2 min read

RateCity welcomes the deeming rate changes, unveiled today by the government, designed to boost the pension of almost 1 million Australians.

Announced alongside the federal coronavirus stimulus package, the lower deeming rate will drop from 1.0 per cent to 0.5 per cent, while the upper rate will drop from 3 per cent to 2.5 per cent. The changes come into effect on May 1.

The highest rate pensioner account on the RateCity.com.au database is currently 1.85 per cent (for balances over $100,000), while the highest term deposit rate is 2.15 per cent for 5 years. In total there are more than 2,200 term deposit and savings accounts above the lower deeming rate.

Which banks are offering the highest deposit rates?

Highest 6 month term deposits on RateCity.com.au
Bank	Rate
Judo Bank	1.90%
ING	1.80%
MyState Bank	1.80%

Highest 12-month term deposits on RateCity.com.au
Bank	Rate
Judo Bank	1.95%
ING	1.90%
ME Bank	1.70%

Highest 36 month term deposits on RateCity.com.au
Bank	Rate
Judo Bank	2.05%
Australian Military Bank	1.65%
Australian Military Bank	1.60%
Greater Bank	1.60%
The Mutual	1.60%

Highest savings accounts on RateCity.com.au Note: Some pensioners may not be able to meet these conditions
Bank	Rate	Conditions
86 400	2.25%	Deposit $1000+ per month, interest paid on balances up to $100,000
Up	2.25%	Make 5 debit card or digital wallet purchases each month, interest paid on balances up to $50,000
Bank of Queensland	2.00%	Deposit $1000+ per month and make 5 or more eligible transactions, interest paid on balances up to $250,000
MyState Bank	2.00%	Deposit $20+ per month and make 5+ eligible transactions each month, interest paid on balances up to $150,000

RateCity research director Sally Tindall said, “This change to the deeming rates will help older Australians get more assistance from the government.

“Savings rates have taken a battering over the last year. Plenty accounts are offering returns well under the old benchmark of 1 per cent. Even at the new low rate of 0.5 per cent, pensioners will still have to shop around to make sure the income on their savings isn’t being unfairly assessed.

“While some big bank savings rates are as low as 0.05 per cent, it is still worth shopping around because there are still rates available that are a whisker above inflation,” she said.

Disclaimer

This article is over two years old, last updated on March 12, 2020. 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 term deposits articles.

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Product database updated 26 Nov, 2024

This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

Laine Gordon

Money Editor

Laine Gordon is the Money Editor at RateCity and an experienced journalist and research specialist. With a background in news and feature writing, covering finance, media and even food (a passion of hers) at Reed Elsevier publications, Laine brings almost two decades of experience to the team. Having covered major areas of interest to the general public from hip pocket issues to rising and falling interest rates and the impact to mortgages, credit and saving in Australia, she is passionate about researching and telling people’s stories to help others make better decisions about their own finances.