On 27 March AMP announced a new interest rate on its AMP Saver Account, increasing the rate by 54 basis points from 2.11% p.a. to 2.65% p.a.
This interest rate was comprised of:
- An introductory interest rate of 1.60% p.a.
- A base interest rate of 1.05% p.a.
- An introductory term of six months
The maximum interest rate of 2.65% p.a. was one of the highest savings account interest rates available - only Macquarie Bank held a similar interest rate with its 4-month introductory rate of 2.65% p.a.
However, less than two weeks later, AMP reversed most of this interest rate increase, cutting the new interest rate by 39 basis points to a maximum rate of 2.26% p.a.
Key info:
- The base rate is 1.05% p.a.
- The introductory rate is 1.21% p.a.
- These rates apply for deposits between $5,000 to $500,000
- The introductory term is still six months
UPDATE: An AMP spokesperson told Savings.com.au that "clients who signed up during the bonus period will continue to receive the bonus 1.60% above the standard variable rate (currently 1.05%) for six months", meaning their interest rate will remain at 2.65% p.a.
All new customers however will get 2.26% p.a.
The table displays how this account now compares to other introductory savings accounts on the market with high interest rates.
Provider | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
4 | 0 | 0 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
FEATURED | High Interest Savings Account (< $250k)
| ||||||||||||
High Interest Savings Account (< $250k)
| |||||||||||||
0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
FEATURED | Savings Maximiser (<$100k)
| ||||||||||||
Savings Maximiser (<$100k)
| |||||||||||||
0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
FEATURED | Saver Account (<$250k)
| ||||||||||||
Saver Account (<$250k)
| |||||||||||||
4 | 0 | 0 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Savings Account (Amounts < $250k)
| |||||||||||||
Savings Account (Amounts < $250k)
| |||||||||||||
0 | 2000 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Home Saver
| |||||||||||||
Home Saver
| |||||||||||||
0 | 200 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
No monthly fees | Save Account
| ||||||||||||
Save Account
| |||||||||||||
0 | 2000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
HomeME Savings Account ($0 - $100,000) | |||||||||||||
0 | 200 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Growth Saver ($1 - $25k) | |||||||||||||
0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Target Saver | |||||||||||||
0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
For customers aged 14-35 years | |||||||||||||
Future Saver Account ( < $50k) | |||||||||||||
0 | 500 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Goal Saver
| |||||||||||||
Goal Saver
| |||||||||||||
0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Boost Saver | |||||||||||||
0 | 0.01 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Reward Saver Account (31 years +) ($0-$100k) | |||||||||||||
0 | 100 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Bonus Saver Account (Amounts < $100k) | |||||||||||||
0 | 20 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Reward Saver Kick Start (Amounts ≤ $1m) | |||||||||||||
0 | 0.01 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Life (< 30 years) (Monthly deposit) | |||||||||||||
5 | 0 | 0 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
NetBank Saver | |||||||||||||
0 | 0 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
ANZ Save | |||||||||||||
0 | 5 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Young Saver Account | |||||||||||||
0 | 50 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Save up |
The 2.26% p.a. interest rate is still higher than nearly every other non-introductory savings account on the market - only Xinja, which recently stopped taking new customers in order to preserve its interest rate - comes close at a 2.25% p.a maximum rate at the time of writing.
But the caveat with products like the AMP Saver is that the rates are introductory - such accounts only have a temporarily-high interest rate, which reverts to the base rate specified once the introductory term is over.
In this case, the rate on AMP's account would revert to just 1.05% p.a. after 6 months, well below the annual rate of inflation (1.80%) and the rates of other savings account products.
The table below features savings accounts with some of the highest non-introductory interest rates on the market.
Provider | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
0 | 200 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
No monthly fees | Save Account
| ||||||||||||
Save Account
| |||||||||||||
0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
FEATURED | Savings Maximiser (<$100k)
| ||||||||||||
Savings Maximiser (<$100k)
| |||||||||||||
0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Boost Saver |
Non-introductory savings accounts tend to have lower total interest rates than introductory ones, but could allow you to earn more interest long-term.
Read: The different types of savings accounts explained