- The highest rate on the savings account market is 6.25% p.a.
- This is an introductory rate, offered to new customers by three banks, but there are conditions attached
- The market is seeing rates boosted as last month's cash rate increase is passed through to savings accounts
ING and NAB-backed Ubank launched new savings account intro rates of 6.25% p.a. on Friday, matching new entrant to the savings market Revolut's boosted intro rate announced on Tuesday.
See also: The different types of savings account interest rates
The three top the leaderboard for introductory rates amid the latest round of interest rate hikes, but there are conditions attached.
See also: RBA raises cash rate to 4.60% p.a.
ING boosts Savings Booster base rate
ING launched its new Savings Booster account in July with an eye-catching welcome rate - 6.00% p.a. at the time - for new-to-ING customers.
Savings Booster's new rate will see the full 25-basis point hike passed on but unlike many of its rivals, ING is delivering the increase to the product's base rate, taking it to 2.50% p.a.
Here's a rundown of Savings Booster's new rate schedule:
- Welcome rate - 0.60% p.a. (first four months for new-to-ING customers on balances up to $500,000)
- Boost rate - 3.15% p.a. on balances up to $500,000 when balance is grown by $100 or more each month (excluding interest)
- Base rate - 2.50% p.a. on balances up to $2 million (up from 2.25% p.a.)
- Total top rate (for new-to-ING customers for four months) - 6.25% p.a.; (for existing customers) 5.65% p.a. when bonus conditions are met
Base, bonus, intro rates: What's the difference?
The base rate is the interest rate account holders receive regardless of whether they meet bonus rate conditions or not.
On some savings accounts products in Australia, these can be as low as 0% or 0.01% with the bulk of interest preserved for bonus rates when certain conditions are met.
These can include:
- depositing a minimum amount each month
- growing the balance each month (excluding interest)
- making a minimum number of transactions via linked transaction accounts
- not making any withdrawals
- combinations of the above
Many banks routinely increase bonus or introductory rates when passing on cash rate rate adjustments as these can apply to fewer customers.
It's a practice that was roundly criticised by the Australian Competition & Consumer Commission in its investigation into savings account products in 2023.
Its report found 71% of customers with conditional savings accounts missed out receiving bonus rates during the reporting period.
Ubank also in the 6.25% p.a. club
Ubank's Save account saw the 25-basis point increase passed onto its Everyday Bonus Rate, boosting it to 5.35% p.a. (up from 5.10% p.a.) on 6 October.
It followed up on 9 October with a 15-basis point increase to its four-month welcome rate (an additional 0.90% p.a. fixed bonus top-up), taking its maximum rate to 6.25% p.a. - level with ING's Savings Booster.
This welcome rate is only available to new customers, defined as those who haven't held a Ubank-branded product for two years.
To achieve the Save account's bonus rate on balances up to $1 million, account holders must:
- have a Spend transaction account, and
- grow combined Save balances by more than $1 each month (except if it's offsetting a Ubank home loan - and interest credits don't count)
If customers fail to meet the Save account's bonus rate criteria, Ubank pays 0% interest for that month while balances over $1 million also earn 0% interest.
Revolut goes high with intro deal, but...
Revolut's 6.25% p.a. offer applies to new customers who open an Instant Access savings account within one month of joining the digital platform.
The intro rate applies for three months on balances up to $50,000 before reverting to rates determined by customers' chosen plans - with the higher tiers (and higher interest rates) attracting monthly subscription fees up to $99.99.
Subscriptions feature various benefits according to the tier levels including insurances, better currency exchange rates, exclusive subscriptions, data, and airport lounge access.
Revolut began as a digital money platform for customers managing multiple currencies so its savings account is likely not the primary reason many depositors would sign up.
Rates of 6% (or close)
Amid the wash of rate increases through the savings account market this week, there are some notable rates:
- Bank of Queensland Future Saver (14-35 year olds) - 6.00% p.a. on balances up to $50,000 when bonus conditions are met
- Newcastle Permanent Smart Saver (under 25s) - 6.00% p.a. on balances under $50,000 when bonus conditions are met
- Bankwest Easy Saver (with four-month intro rate on balances up to $250,000.99) - 6.00% p.a.
- Westpac Life (with Spend&Save bonus for 18-40 year olds) - 5.95% p.a. when bonus conditions are met (Spend&Save bonus applies on balances up to $150,000)
- Rabobank High Interest Savings Account (with four-month intro rate for new customers on balances up to $250,000) - 5.90% p.a. [*Rabobank has not adjusted savings account rates after the September cash rate decision]
- RACQ Bank Bonus Saver - 6.00% p.a. (from 13 October) on balances up to $99,999 when bonus conditions are met
As with many high savings rates, there are some catches - namely age restrictions or intro rates applying to new customers only, while RACQ savings accounts are only open to those with a Queensland residential address.
No (or low) catch savings account rates
In recent years, more savings account customers have been looking to no-condition, or 'no hoops', products to earn them a fair interest rate without having to manage monthly conditions.
Rates on many such products are now around the 5.25% - 5.50% p.a. mark, including:
- AMP Bank GO Save - 5.50% p.a. on balance portions up to $50,000
- Judo Bank Personal Savings Account - 5.60% p.a. on balances up to $250,000 (requires deposit of $300 a month to achieve top rate - no balance growth requirement)
- Bank of Queensland Simple Saver - 5.55% p.a. for first four months on balances up to $5 million (ongoing rate of 5.00% p.a.)
- Easystreet Flex Saver - 5.30% p.a. on balances up to $3 million
- Macquarie Bank Savings Account - 5.25% p.a. (from 15 October) on balances up to $250,000
What are the big four's best savings rates?
The big four banks have now all handed down their savings rates in the wake of the September cash rate increase, with ANZ the last to release its new rates on Friday.
Here are their top interest rates on accounts without age restrictions:
ANZ Plus Growth Saver - 5.35% p.a. when bonus conditions are met
Commonwealth Bank NetBank Saver - 5.50% p.a. (rate only available to new to NetBank Saver customers and includes 3.20% p.a. fixed bonus margin for the first five months). Rate of 2.30% p.a. applies thereafter
Westpac Life Goal Savings Account - 5.25% p.a. when bonus conditions are met
NAB iSaver - 5.50% p.a. for the first four months for new customers. Rate of 1.85% p.a. thereafter
Some banks are yet to announce savings account adjustments after the latest cash rate increase but it's worth noting, they are also not obliged to pass on any changes.
Savings.com.au will continue to keep track of the latest savings account rate movements.
See also: Which banks are lifting savings rates after the September cash rate increase?
As with all financial products, those wanting to take the opportunity to switch savings accounts in the current high-rate environment are advised to read the fine print and ensure they understand what is required to achieve a product's highest interest rate.
It's also important to match account offerings to personal needs and financial circumstances.
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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.
| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
3.00% p.a. | 6.25% p.a. Intro rate for 3 months then 3.00% p.a. | $769 | 3 months | $0 | $49,999 | $0 | $0 | $0 |
| Promoted | Disclosure | ||||||||
0.05% p.a. Bonus rate of 5.55% Rate varies on savings amount. | 5.60% p.a. | $1,149 | – | $0 | $249,999 | $0 | $0 | $0 |
| Promoted | Disclosure | ||||||||
5.30% p.a. | 5.30% p.a. | $1,086 | – | $0 | $99,999,999 | $0 | $0 | $0 |
| Promoted | Disclosure | ||||||||
2.50% p.a. Bonus rate of 3.15% Rate varies on savings amount. | 6.25% p.a. Intro rate for 4 months then 5.65% p.a. | $1,186 | 4 months | $0 | $499,999 | $0 | $0 | $0 | Disclosure | ||||||||||
4.00% p.a. | 5.90% p.a. Intro rate for 4 months then 4.00% p.a. | $936 | 4 months | $0 | $249,999 | $0 | $1 | $0 | Disclosure |
