Savings rates are higher but perhaps not lifting fast enough

Saving money

After the RBA’s cash rate hike this week to 3.35%, pressure is mounting on banks to up their savings accounts interest rates too. 

Among those calling for better rates for savers is Treasurer Jim Chalmers, who said in an ABC Radio interview this week that banks should be fair to customers when it comes to savings.

This comes on the heels of the treasurer asking the Australian Competition and Consumer Commission (ACCC) to investigate bank deposit pricing. 

Savings interest rate increases can follow an official rate change but typically not before lenders focus on their home loan rates – and this often prompts questions from the government and consumers alike. 

Still, a couple of savings accounts were given a boost already this week, with both ANZ and UBank looking to please savers with newly proposed rates over the coming weeks. 

For example, ANZ’s Plus Save Account will increase by 0.25% to 4% in March, while UBank will lift its Save Account by 0.25% to 4.35% in mid-February. 

Generally speaking, savings rates have been improving over the past year and 4% seems like a pretty good benchmark for those shopping around. 

Indeed a number of providers have moved their savings rates above 4% in recent times, including Great Southern Bank, AMP, Virgin Money and Westpac.

Meanwhile, a few others are offering even higher savings rates at 4.5% or above, including ING, Bank Of Queensland, Move Bank and Virgin Money on its Go Saver for younger savers. 

Keep in mind that there are a range of conditions to be met across each of these savings products, so higher advertised rates are not always guaranteed unless you can meet several requirements. 

Ultimately it pays to shop around to see if you can pick up a better rate than the one you’re currently on. At Mozo our experts analyse the best savings accounts on the market, considering not only the rate of interest but other features that can be beneficial to you.