Australia’s largest bank, CBA, will not pass on Tuesday’s cash rate hike to its savings accounts at this stage, despite rising variable rates on home loans.
Westpac, NAB and ANZ all transfer 0.25 percentage points to their bonus savings accounts. Westpac also forwards the increase to its retiree account.
Big Four Bank Savings Accounts – what changed after the RBA?
What does CBA do for savers?
Instead of savings account hikes, the CBA is offering a special 18-month term deposit, at a rate of 2.25%, paid annually, for balances between $5,000 and less than $2 million , starting May 13.
The CBA Special Term Deposit is far superior to what the big four banks offer on 1 and 2 year term deposit accounts, however, it falls short of market leaders in this area.
The RateCity.com.au database shows that the highest 1-year term deposit rate is currently 2.70%, while the highest 2-year term deposit is 3.50% – both from Judo Bank. Macquarie Bank and AMP also offer higher rates than ABC.
After RBA Rise: Big Four Bank Bonus Savings Rates
| Bank | Account | Increase | Maximum rate | Effective date |
| ABC | GoalSaver |
0% |
0.25% |
N / A |
| Westpac | Life |
+0.25% |
0.50% |
May 17 |
| NAB | reward saver |
+0.25% |
0.50% |
May 13 |
| ANZ | progress saver |
+0.25% |
0.40% |
May 13 |
Source: RateCity.com.au. Conditions apply for the maximum fare.
RateCity.com.au Research Director Sally Tindall said: “This is a hugely disappointing decision by the CBA. Savers at Australia’s largest bank have a right to feel ripped off.
“The bank offered nothing for children and nothing for regular savers,” she said.
“CBA has put a special 18 month term deposit on the table like an olive branch, but unless the bank’s saving customers proactively transfer their money to this account and lock it in for a year and a half , they’re going to miss that rate hike entirely.
“At 2.25 per cent for 18 months, this special term deposit is competitive, however, these types of products will not suit everyone.
“Westpac, NAB and ANZ all passed on the cash rate hikes to their popular bonus savings accounts, and it was the right thing to do. However, some of their customers with different accounts also missed out.
“The rise in the cash rate was supposed to mark a turning point for savers. Instead, it fell flat for millions of Australians.
“The irony is that the more money we put in the bank for a rainy day, the less banks are likely to offer competitive rates.
“Paying a higher interest rate on a record level of deposits will be quite expensive for Australia’s biggest banks, especially with many more cash rate hikes waiting in the wings.
“Now is the time for customers to take a health check of their savings account. There are still competitive rates, but they usually come with layers of fine print, so savers should make sure they are eligible,” she said.
Highest 1 Year Term Deposit Rates on RateCity.com.au
| Bank | Rate | Interest Payment Frequency |
| judo bank |
2.70% |
Annually |
| Macquarie Bank |
2.50% |
Annually |
| AMP Bank |
2.45% |
Annually |
Highest 2 Year Term Deposit Rates on RateCity.com.au
| Bank | Rate | Interest Payment Frequency |
| judo bank |
3.50% |
At maturity |
| Macquarie Bank |
3.30% |
Annually |
| AMP Bank |
3.25% |
Annually |
Highest term deposit rates for any term at RateCity.com.au
| Bank | Term | Rate | Interest Payment Frequency |
| judo bank | 60 months |
4.05% |
At maturity |
| AMP Bank | 60 months |
3.90% |
Annually |
| Macquarie Bank | 60 months |
3.50% |
Annually |
Source: RateCity.com.auThe above deposit rates apply to balances of $20,000.
