Savers profit from RBA increase

Savings account holders are reaping the benefits of the Reserve Bank's decision to lift the official cash rate to 4.75 per cent earlier this month, it has been observed.

Canstar Cannex financial analyst Adam Beu noted that while the base rate of the majority of cash savings accounts is a bit above the official cash rate, several accounts are advertised as having rates of six per cent and above.

However, speaking to the Sydney Morning Herald, he also urged consumers to compare savings accounts carefully by looking at all the terms and conditions.

"A lot of these rates are promotional and bonus accounts and conditions around how they pay will differ between institutions," said Mr Beu.

In addition, the newspaper noted that a major point of difference between online savings accounts and other savings accounts is the higher rates of interest "at call" in return for more restricted account access.

It commented that this tends to include an absence of "over-the-counter or cheque facilities".

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