Time to switch, savers? Saving account rates now start with ‘5’

After nearly a year of RBA cash rate hikes, some financial institutions have finally increased their savings variable interest rates to a ‘5’.

Typically, savings rates move up slower than home loan interest rates because banks don’t benefit from offering generous savings. Thankfully, in the last year, we’ve seen the rates climb from a measly 1% all the way up to 4% – which is now the savings rate norm. 

Notably, there are currently 56 savings accounts in Mozo’s database starting with a ‘4’.

However, three savings accounts also start with a ‘5’ - Rabobank’s High Interest Savings Account, BOQ’s Future Saver and ING’s Savings Maximiser. 

Let’s take a closer look:

Rabobank’s High Interest Savings Account has a special 5.00% p.a. rate for the first four months for new customers. Then, it reverts back to a 3.75% p.a.

Bank of Queensland’s Future Saver Account (14 to 35 years) has a bonus rate of 5.15% p.a. for people younger than 35. You’ll need to meet specific requirements like depositing a minimum of $1,000 each month and completing 5 eligible transactions to get this bonus rate. 

ING’s Savings Maximiser has a special bonus rate of 5.00% p.a. Much like BOQ’s savings you’ll need to meet specific requirements to get the full bonus rate. That includes depositing a minimum of $1,000 each month, growing your balance and completing 5 eligible transactions.

Mozo’s banking expert Peter Marshall says that if you’re looking to change your savings account, now is the time to do it, or at least start considering stashing your savings in a term deposit. 

If you're looking for ways to save more money, check our Mozo’s savings guides and tips. Alternatively, start comparing savings accounts below.