Which banks have increased rates for savers after the RBA decision?

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on June 28, 2022 Fact Checked
Which banks have increased rates for savers after the RBA decision?

The Reserve Bank's cash rate is now at 0.85%, and while there's much focus on the increases to home loan rates, savers shouldn't be forgotten about.

This page will detail the latest rate change announcements for savings accounts and term deposits following the RBA's 50 basis point rate hike. 

Highlights so far include:

  • ING Savings Maximiser boosted by 75bps to 2.10% p.a.
  • Macquarie's transaction account now has a 1.50% p.a. interest rate
  • Westpac's under-30s maximum savings account rate was boosted to 2.50% p.a.

Make sure to check back here regularly as more banks tinker with their savings products.

ANZ deposit rate increase June

Effective 13 June, ANZ increased various 'Advance Notice' term deposit rates.

For example the 11 to 12 month rate is now 2.25% p.a. with interest payable at the end of term.

The minimum investment is $5,000.

Unlike other term deposits, 'advance notice' products require 31 days' notice to withdraw the funds.

Commonwealth Bank deposit increase June

Australia's largest bank will increase the bonus interest rate on some savings products by 50 basis points, effective 17 June 2022.

  • GoalSaver to increase to 0.75% p.a. (grow balance every month)
  • YouthSaver to increase to 0.95% p.a. (under-18s, maximum balance $50,000, grow balance every month)

CBA will also extend the availability of its special offer 18-month term deposit rate of 2.25% p.a.

NAB deposit increase June

Like Westpac, NAB will offer a special 12-month term deposit rate of 2.25% p.a. effective 17 June 2022.

Westpac term deposit increase June

The major bank announced from 9 June it will introduce a 12 to 23 month term deposit rate of 2.25% p.a. 

This is available for amounts from $5,000 to $5 million, and interest is either paid monthly or at maturity.

Presently its other term deposit rates hover around a maximum of 0.30% p.a., and Westpac noted other products remain under review.

"We know a change in interest rates affects every budget differently. Our customers have managed their finances carefully during the pandemic, with many putting more funds aside in their savings and offset accounts," said Chris de Bruin, Westpac's consumer and business banking chief.

On 27 June, Westpac increased the maximum rate on its under-30s savings account to 2.50% p.a. up to balances of $30,000.

This is provided bonus criteria is met, including growing the balance every month and making five settled debit card transactions on the linked transaction account.

Many customers are also hit with a $5 monthly account keeping fee unless they deposit at least $2,000 a month into the transaction account.

This total savings rate consists of a 0.15% p.a. base rate, 0.70% p.a. for growing the balance, and 1.65% p.a. for the five transactions.

Customers can also attain 0.85% p.a. for balances over $30,000.

Westpac's youth account was up to 3.00% p.a. on launch around two years ago despite a cash rate then of 0.25%.


Bank of Queensland

BoQ increased interest rates on its 'Premier Investment' term deposit products by up to 75 basis points.

For example, the 12-month rate is now 2.50% p.a. with interest paid at the end of term.

The 24-month rate is also 3.00% p.a. with interest paid annually.

BoQ also made a few changes to its savings accounts:

  • Smart Saver: Up 120 basis points to 2.00% p.a. 
  • Future Saver: Up 20 basis points to 1.00% p.a. (criteria applies)
  • Simple Saver: Up 55 basis points to 1.00% p.a. 

The Smart Saver account is specifically for those aged over 36.

These savings account changes apply from 15 June.

No word yet on its market-leading 3.00% p.a. savings account for under-35s.

Bankwest

Bankwest increased its Hero Saver account to a maximum of 1.20% p.a. 

This consists of a 0.01% p.a. base rate and a 1.19% p.a. bonus rate - to attain the bonus customers must deposit $200 per month and make no withdrawals.

This applies to balances up to $250,000.

As recently as March this year the rate was as low as 0.45% p.a.

Bendigo and Adelaide Bank

The joint outfit will increase interest rates on its Reward Saver account by 50 basis points.

For those 30 years or under the new rate will be 1.25% p.a. while for 31-plus it will be 0.95% p.a.

The balance must be higher than at the start of the month, and it applies on balances up to $100,000.

The new rate applies from 17 June.

Citi

Citi, now owned by NAB, increased the introductory rate of its Online Saver to 2.10% p.a. 

This rate applies for four months for balances up to $500,000.

After the four months or if the balance exceeds $500,000, the interest is reduced to 1.10% p.a. on the entire balance.

Great Southern Bank

On 17 June GSB increased its Youth ESaver account by 75 basis points to 3.25% p.a.

This is an account for kids aged up to 17, with a maximum deposit limit of $5,000.

Amounts over $5,000 attract a 1.00% p.a. interest rate.

HSBC

On 17 June HSBC changed rates on a fair few term deposits by up to 250 basis points.

For example, the five-year term deposit is now 3.00% p.a. with interest payable annually.

Like the major banks above, HSBC also increased its one-year term deposit to 2.25% p.a. with interest payable monthly.

The minimum deposit on these products is $5,000.

ING Savings Maximiser increase June

ING has increased the interest rate on its popular Savings Maximiser account by 75 basis points.

This brings the total rate including bonuses up from 1.35% p.a. to 2.10% p.a. on balances up to $100,000.

To earn the bonus rate, every month customers must: deposit $1,000 in the linked transaction account; make five settled card purchases; and ensure the savings balance is higher.

The new rate is effective from 15 June.

ING is also increasing the 12 month term deposit rate for new and existing customers to 2.75% p.a. 

This will be effective 10 June.

Judo Bank term deposit rate increase

On 21 June Judo Bank increased rates on some term deposits by up to 55 basis points.

For example the three-year rate is now 4.00% p.a. with interest payable at the end of term.

The five-year rate is now 4.25% p.a. with interest payable at the end of term.

There are slight reductions in the interest rate if savers opt for interest payable monthly or annually.

Macquarie Bank boosts transaction account rate

In what the fourth largest bank claims to be an Australian first, Macquarie has increased the interest rate on its transaction account to 1.50% p.a.

This applies to new and existing customers, effective from 17 June.

It claims this is about 1.45 percentage points higher than the industry average.

This is effective on balances up to $250,000, and matches Macquarie's rate on its ongoing savings account.

"The concept of having to shuffle your money between separate online savings accounts just to earn competitive interest felt outdated and inefficient," said Olivia McArdle, Macquarie's head of payments and deposits.

Macquarie also has a four month introductory rate on its savings account of 1.80% p.a.

ME Bank

ME Bank boosted rates on its term deposit products by 25 basis points for new customers.

For example, the two-year rate is now 2.95% p.a. with interest paid monthly.

ME also boosted its online savings account rate by 30 basis points, bringing the total rate to 1.10% p.a. provided monthly criteria is met.

MyState

MyState will increase the maximum bonus rate on its savings account to 1.60% p.a. from 15 June.

This is a 50 basis point increase, and is applicable on balances up to $250,000.

To be eligible for the total interest rate, customers must deposit at least $20 and make five eligible transactions on the linked transaction account's debit card every month.

Rabobank

Rabobank increased its four month introductory savings account rate to 2.10% p.a. on 22 June.

The PremiumSaver ongoing rate was also boosted 50 basis points to 1.65% p.a. on balances up to $250,000 provided customers deposit $200 per month.

Various other savings accounts were boosted by 30 to 50 basis points.

Suncorp

Suncorp has introduced a new 12-month term deposit rate of 2.30% p.a.

It has also boosted its Growth Saver account by 70 basis points, up to a maximum of 1.30% p.a. 

To attain the top Growth Saver rate customers must grow their balance by $200 or more every month and make no more than one withdrawal.

The bank notes other interest rates are also under review.

Ubank

From 1 July, Ubank customers will get a boost to their USave and Save account interest rates.

The rates will be boosted by 60 basis points to a maximum of 1.85% p.a. - this consists of a base 0.10% p.a. and a bonus 1.75% p.a.

To get the bonus customers must deposit $200 each month.

Customers can open up to 10 accounts and get the bonus on all of them, provided the total balance doesn't exceed $250,000.

Virgin Money

Virgin Money has increased rates on its Boost and Grow saver accounts, effective 15 June.

The Boost Saver account for under-35s is now 1.50% p.a. while the Grow Saver is 1.00% p.a.

For the Boost Saver, certain monthly criteria applies depending on your age.

Savers will also get a 40 basis point premium on the Boost Saver should they decide to use the rate locking feature, bringing the total to 2.00% p.a.

There is also a 50 basis point premium on the Grow Saver account when the rate lock is enabled, bringing the total to 1.50% p.a.

More to come...


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              author-avatar
              Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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