Which banks are increasing savings rates following the RBA's December decision?

For the eighth consecutive month, the RBA has delivered a cash rate increase taking the total rate to 3.10%. 

Despite impacting variable rate mortgage holders, savers have reaped the rewards with RBA data detailing the average bonus interest savings account rate has lifted from 20-year lows of 0.25% in April to 3.05% in November. 

The number of banks offering savings rates above the RBA average continues to climb, with Savings.com.au market research revealing at current 10 banks offer savings account at 4% or greater, with that number expected to grow following the December decision. 

• For November's movement, see this page.

December highlights:

• BOQ will increase its Future Savers account rate to 4.75% p.a.
• ING will increase its Savings Maximiser account rate to 4.55% p.a.  
• Macquaire Bank will increase the four-month welcome rate for new savings customers to 4.50% p.a. 
• Westpac will increase its Spend&Save account rate to 4.35% p.a.
• Virgin Money will increase its Boost Saver account rate to 4.30% p.a.
• ubank will increase its savings account rate to 4.10% p.a.
• Rabobank will increase the four-month welcome rate for its High Interest Savings account to 4.50% p.a.

This page will detail the latest rate change announcements for savings accounts and term deposits following the RBA's 25 basis point rate hike - be sure to check back here regularly.

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

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The market leaders

Bank of Queensland increases savings rates

Bank of Queensland (BOQ) will increase its Future Saver savings account by 40 basis points to 4.75% p.a. for balances up to $50,000.

To be eligible to receive this rate, customers will require $1,000 minimum monthly deposit with a minimum of 5 eligible transactions on their linked Everyday Account every month.

BOQ will also increase:

• Smart Saver by 0.15% to 4.00% p.a. for balances between $1 and $250,000.
• Simple Saver 4-month Introductory Special by 0.50% for a total rate of 4.10% p.a. for balances up to $5 million.

These increases are effective from 9 December, 2022.

ING 

Following Bank of Queensland's lead, ING will increase its popular Savings Maximiser account by 25 basis points to 4.55% p.a. from 13 December 2022. 

ING's new rate of 4.55% p.a. is available for customers with a maximum balance of $100,000 with an eligible Orange Everyday Bank account. 

To be eligible to receive this rate, customers will deposit at least $1,000 from an external source to any personal ING account, make five or more settled eligible ING card purchases and grow their nominated Savings Maximiser balance.

ING will also increase Savings Accelerator accounts with:

• Customers with less than $50,000 to 2.10% p.a., up from 1.85% p.a.
• Customers with $50,000 to $150,000 will earn an interest of 3.00% p.a., up from 2.75% p.a.
• Customers with more than $150,000 will earn an interest of 3.20% p.a., up from 2.95% p.a.

Macquarie Bank to increase savings rates

Macquarie Bank will increase rates across both its savings and transaction account, passing on RBA's December cash rate increase in full. 

The base rate of Macquarie Bank's savings account will lift to 3.70% p.a., with the four-month welcome rate for new customers increasing to 4.50% for balances of $250,000 from 13 December 2022.

Macquarie Bank's everyday transaction account will also increase to 3.70% p.a., for balances up to $250,000. 

Macquarie’s savings and transaction accounts have no minimum balance or deposit requirements, no transaction conditions, and no need to lock money away for a set period to receive the interest rate.

Westpac, CommBank, ANZ, and NAB

Westpac to increase savings rates

Westpac is the first of the big four banks to move savings rates following the RBA's decision to increase the cash rate by 25 basis points.

Westpac will increase the Westpac Life total variable rate with bonus interest by 25 basis points to 3.75% p.a.

Westpac's Spend&Save offer for 18-29 year olds, up to a balance of $30,000, will also increase by 35 basis points to 4.35% p.a.

These increases will come into effect from 16 December, 2022.

Westpac Consumer and Business Banking Chief Executive Chris de Bruin said the bank continues to increase savings rates to support customers for the future.

"We know our customers are paying extra attention to their household budget in the lead-up to Christmas and looking at ways to manage their money into the New Year in the changing economic environment," Mr de Bruin said.

Keep in mind that Westpac, BankSA, Bank of Melbourne and St George all share the same ADI (banking licence), meaning they are all collectively under the same $250,000 Government Deposit Guarantee umbrella.

CommBank to increase savings rates

Australia's largest bank has once more increased savings rates following the RBA's December cash rate decision. 

CommBank will increase all of NetBank Saver, GoalSaver and Youthsaver accounts by up to 60 basis points from 16 December 2022.

The NetBank Saver account will increase by 25 basis points to 1.60% p.a., with the account offering a boosted five-month introductory rate of 3.75% p.a. 

Further, GoalSaver accounts will increase by 55 basis points to 3.25% p.a. and Youthsaver accounts will increase by 60 basis points to 3.50% p.a. 

CommBank details it will extend the availability of its 18-month Term Deposit special offer of 4.00% p.a. 

ANZ & NAB savings rates remain under review

Both big-four banks are yet to announce any savings rate movement, despite detailing an increase to variable rate home loans. 

Instead, both ANZ and NAB have outlined that savings rates remain continually 'under review'. 

The best of the rest

ubank to increase savings rates

Continuing the trend of being first to move savings rates following an RBA cash rate decision, ubank will increase its 'Save' account rate by 0.25% to a total of 4.10% p.a. from 1 January 2023. 

To receive ubank's rate of 4.10% p.a. customers are required to have a ubank Spend account and deposit $200 per month (excluding internal transfers) into any Spend and Save accounts. 

Virgin Money increases savings rates

Effective 9 December, BoQ-owned Virgin Money will increase the maximum rate on its Boost Saver to 4.30% p.a. - a 45 basis point increase.

To attain this maximum rate, savers must deposit at least $2,000 per month into their Go transaction account, and make five settled debit card purchases too.

Further, the maximum rate increases to 4.60% p.a. if savers use the optional 'Lock Saver' feature. This feature boosts the savings rate if account holders lock away all or part of their funds for 32 days.

The maximum deposit cap is $250,000.

Rabobank increases savings rates

Rabobank has increased the 4-month introductory variable rate to its High Interest Savings Account by 25 basis points (0.25%) taking the rate to 4.50% p.a.

The 4.50% p.a. offering applies to new Rabobank customers for savings balances up to $250,000 with no deposit or withdrawal conditions to earn the rate.

Once the 4-month introductory rate finishes, the rate will revert to the standard variable rate.

New customers looking to take advantage of the 4.50% rate can only open one High Interest Savings Account with Rabobank.

Further, Rabobank increased its PremiumSaver account by 25 basis points (0.25%) to a rate of 3.90% p.a.

To receive this rate up to balances of $250,000, customers are required to deposit $200 each month.

The increases came into effect on 14 December, 2022.

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