It's no secret that borrowers are hit hard whenever the RBA increases the cash rate - variable interest rates on home loans often go up by the same amount.

However, the RBA's aggressive increases to the cash rate is primarily aimed at stamping out high inflation i.e. higher grocery prices at the checkout.

Annual grocery inflation for the September 2022 quarter came to:

  • 13% for breakfast cereals;
  • 10.5% for bread; 9.3% for beef;
  • 12.1% for dairy and 16.2% for milk specifically;
  • 16.2% for fruit and vegetables; 10.4% for eggs;
  • and a massive 19.3% for oils and fats.


This is compared to an overall annual inflation rate of 7.3%, according to ABS figures.

RBA Governor Dr Philip Lowe has said high inflation is a "scourge".

However, there are signs the RBA's rate hikes could be doing the intended job already, with inflation starting to come off the boil.

"There has been a substantial cumulative increase in interest rates since May," Dr Lowe said.

"This has been necessary to ensure that the current period of high inflation is only temporary. High inflation damages our economy and makes life more difficult for people."


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Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for a 12-month term. 

Provider

At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • Automatic maturity rollover
  • Maturity alert by email and phone
  • Early Withdrawal Available

Term Deposit - 12 months

  • Automatic maturity rollover
  • Maturity alert by email and phone
  • Early Withdrawal Available
At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • Guaranteed rate of return
  • Manage your term deposit online
  • $0 monthly account fee

Term Deposit - 12 months

  • Guaranteed rate of return
  • Manage your term deposit online
  • $0 monthly account fee
Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

Term Deposit ($1000-$500001) - 12 months

    Annually, Semi-Annually, At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details

    Term Deposit - 12 months

      At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10008$product[$field["value"]]$product[$field["value"]]More details

      Online Term Deposit - 12 months

        Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details

        Term Deposit - 12 months (Annually)

          At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]50031$product[$field["value"]]$product[$field["value"]]More details

          Term Deposit ($500 - $1mn) - 12 months

            Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

            Term Deposit - 12 months

              At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

              Term Deposit ($5000+) - 12 months

                Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

                Term Deposit ($1000+) - 12 months

                  Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

                  Term Deposit ($5000-$999999) - 12 months

                    Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

                    Term Deposit (> $1000) - 12 months

                      Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000$product[$field["value"]]$product[$field["value"]]More details

                      Income Plus - 12 months

                        At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

                        Term Deposit ($5k-$25k) - 12 months

                          Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]50031$product[$field["value"]]$product[$field["value"]]More details

                          Term Deposit ($500-$19999) - 12 months

                            At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500000$product[$field["value"]]$product[$field["value"]]More details

                            Fixed Term Deposit ($500000+) - 12 months

                              At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

                              TDs Premier Investment ($5k - $250k) - 12 months

                                Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10000031$product[$field["value"]]$product[$field["value"]]More details

                                Term Deposit ($100,000-$999,999) - 12 months

                                  At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2000$product[$field["value"]]$product[$field["value"]]More details

                                  Term Deposit - 12 months

                                    Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000$product[$field["value"]]$product[$field["value"]]More details

                                    Term Deposit ($1000-$499999) - 12 months

                                      Important Information and Comparison Rate Warning

                                      All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of April 16, 2024. View disclaimer.

                                      Deeming Rates

                                      Deeming rates - the interest rates the government deems your assets to be earning - are safe despite all the cash rate rises in 2022.

                                      This is because they are a government function, not one of the RBA.

                                      In its October Federal Budget, the Albanese Government announced a freeze on deeming rates at their current levels until 30 June 2024.

                                      From 1 July 2022, the deeming rates are:

                                      Deeming rates 2022/23 Single Couple (combined)
                                      where at least one of you get a pension
                                      Couple (combined)
                                      where neither of you get a pension
                                      0.25% Up to $53,600 Up to $89,000 Up to $44,500 of each of your own and your share of joint financial assets
                                      2.25% Above $53,600 Above $89,000 Above $44,500

                                      Source: Services Australia, via Industry Super.

                                      After the RBA cut the cash rate to historic lows in 2020, deeming rates were often more than what pensioners could realistically achieve on their savings accounts and term deposits. However the government of the day slashed deeming rates in late March 2020.

                                      Age Pension

                                      The age pension is indexed to inflation every year, and received its largest increase in 12 years recently due to high inflation. 

                                      From 1 December pensioners can also receive a one-off $4,000 work boost.

                                      Savings and Term Deposits 

                                      Savings account rates and term deposit rates for new customers are expected to increase in-line with RBA movements (up by 25 basis points).

                                      Check back on this page as Savings.com.au endeavours to deliver all the latest rate information.

                                      Look for a savings account product that is sticking loyal to its customers by increasing by the same proportion.

                                      Compare all the savings account rates over 4.00% p.a. here.

                                      No matter who you bank with in Australia, all deposits are protected by the $250,000 Financial Claims Scheme, so your money is safe.

                                      Interest rates are generally higher on savings accounts with more conditions, such as deposit requirements, transaction requirements, and needing to grow the balance.

                                      Be aware some of the most competitive rates are age-limited.

                                      If you want to 'set and forget' with a term deposit, be aware that exiting a term deposit early could result in penalties and interest sacrifices.

                                      However, term deposits often come with the added benefit of zero conditions that need to be met other than a minimum one-off deposit, and have much higher maximum deposit ceilings, sometimes up to $5 million.

                                      RBA data has the average bonus savings account rate at 3.05% p.a. for November, and 2.85% p.a. for one-year term deposits - it's not all that hard to find rates higher than the average.


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                                      Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

                                      Provider

                                      4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                      • Bonus rate for the first 4 months from account opening
                                      • No account keeping fees
                                      • No minimum balance

                                      High Interest Savings Account (< $250k)

                                      • Bonus rate for the first 4 months from account opening
                                      • No account keeping fees
                                      • No minimum balance
                                      4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                      • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
                                      • No withdrawal notice periods or interest rate penalties

                                      Savings Account (Amounts < $250k)

                                      • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
                                      • No withdrawal notice periods or interest rate penalties
                                      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                      • Earn up to 5.40% pa by depositing $1,000 in the previous month
                                      • No account fees
                                      • Easy access to your money

                                      Saver Account (<$250k)

                                      • Earn up to 5.40% pa by depositing $1,000 in the previous month
                                      • No account fees
                                      • Easy access to your money
                                      02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                      No monthly fees
                                      • Download the App to open your account
                                      • Get better visibility of your spending within App!
                                      • Deposit $200 per month to activate bonus interest
                                      No monthly fees

                                      Save Account

                                      • Download the App to open your account
                                      • Get better visibility of your spending within App!
                                      • Deposit $200 per month to activate bonus interest
                                      Important Information and Comparison Rate Warning

                                      All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of April 16, 2024. View disclaimer.