Last year’s three reductions to the cash rate have not been kind to savings accounts. And with precautionary savings on the rise, banks have felt little pressure to compete for depositors by offering high rates. Right now, the average introductory bonus rate sits at a paltry 0.82% p.a., while the average ongoing bonus rate is even lower at 0.76% p.a.
The Westpac Life account and NAB reward Saver continue to lead among offerings from the major banks, giving savers interest rates of 0.55% p.a. so long as a few requirements are met. For those aged between 18 and 29, the maximum rate on the Westpac Life account jumps up to a staggering 3.00% p.a. However, this only applies to balances up to $30,000, and the monthly conditions are a bit more numerous.
Bank of Queensland also offers rates of 3.00% with its Fast Track Starter Account. Like the Westpac Life account, this is also only available to young Australians, specifically those aged 14 to 24, and the maximum rate only applies to balances up to $10,000.
For Australians who don't meet the age requirements for the Life account, there are still a few worthwhile options out there. ING currently offers an ongoing bonus rate of 1.35% p.a., so long as monthly conditions are met. Rabobank offers an introductory rate of 1.75% p.a. - the highest in our database - which is available for the first 4 months before reverting to 0.30% p.a. And the Macquarie savings account comes with a base rate of 1.20% p.a., which is unconditional for balances up to $250,000.
To find out how interest rates are tracking in other banking products for January, check out our snapshot for Home Loan Interest Rates, Personal Loan Interest Rates, Car Loan Interest Rates and Term Deposit Interest Rates.
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