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

Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
A GREAT RATE FOR OVER 55s
  • If you are over 55 you can take advantage of special rates
  • $0 monthly account fee
  • Guaranteed rate of return
A GREAT RATE FOR OVER 55s

Term Deposit (Platinum Plus 55+) - 12 months

  • If you are over 55 you can take advantage of special rates
  • $0 monthly account fee
  • Guaranteed rate of return
At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2500031$product[$field["value"]]$product[$field["value"]]More details

Term Deposit - 12 months

    At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500007$product[$field["value"]]$product[$field["value"]]More details

    Wealth Builder Term Deposit - 12 months ($50,000+)

      At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2500031$product[$field["value"]]$product[$field["value"]]More details

      Term Deposit ($25k-$5m) - 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"]]100031$product[$field["value"]]$product[$field["value"]]More details

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

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

              Term Deposit ($5k-$500k) - 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

                  At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]50001$product[$field["value"]]$product[$field["value"]]More details

                  Fixed Term Deposit - 12 Months ($500+)

                    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
                    • $0 monthly account fee
                    At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2500031$product[$field["value"]]$product[$field["value"]]More details

                    Term Deposit - 12 months (Monthly)

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

                      Term Deposit ($10000+) - 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

                          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

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

                            Term Deposit ($5000+) - 12 month

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

                              Term Deposit Special - 12 months

                                Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100000031$product[$field["value"]]$product[$field["value"]]More details

                                Term Deposit ($1,000,000-$2,000,000) - 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 ($100000+) - 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

                                      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 July 15, 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
                                      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                                      Saver Account (<$250k)

                                        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
                                        • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace

                                        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
                                        • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
                                        000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                        *Rate varies on savings amount
                                        • Deposit $500 per month to get bonus interest
                                        • No balance growth needed or card transactions necessary.
                                        • Tiered bonus rates apply. Earn our best rate on your first $100k. (TMDs at ubank.com.au)
                                        • 5.50% p.a. available on total savings up to $100K.
                                        • 5.00% p.a. applies to savings between $100K-250K.
                                        *Rate varies on savings amount

                                        Save Account (>$100,000)

                                        • Deposit $500 per month to get bonus interest
                                        • No balance growth needed or card transactions necessary.
                                        • Tiered bonus rates apply. Earn our best rate on your first $100k. (TMDs at ubank.com.au)
                                        • 5.50% p.a. available on total savings up to $100K.
                                        • 5.00% p.a. applies to savings between $100K-250K.
                                        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 July 15, 2024. View disclaimer.