With the Reserve Bank of Australia (RBA) raising the cash rate for the third consecutive month, there’s no better time for savers to seek competitive deals on savings products.
Following this month’s board meeting, the RBA announced a 50 basis point increase in the official exchange rate to 1.35%. In response, a series of banks have so far announced increases to their term deposit rates, including the following:
Rise in term deposit rates after RBA cash rate hike in July 2022
| Bank | Rate increase | New tariff | Mandate’s duration | Minimum investment | Effective date |
| CommBank | N/A – special offer | 2.50% | 15 months | $5000 | July 15, 2022 |
| ANZ | 0.25% | 2.50% | 11 months | $5000 | July 11, 2022 |
| NAB | 0.25% | 2.50% | 12 months | $5000 | July 15, 2022 |
| Westpac | 0.25% | 2.50% | 12 months to 23 months | $5000 | July 8, 2022 |
| Australian Military Bank | N/A – special offer | 2.60% | 12 months | $1000 | July 13, 2022 |
| Australian Unity Bank | Various | Various | 1 month to 5 years | $5000 | July 8, 2022 |
| Bank first | 0.40% | 2.75% | 12 months | $500 | July 15, 2022 |
| Bank of Melbourne | N/A – special offer | 2.50% | 12 months to 23 months | $1000 | July 8, 2022 |
| Bank SA | N/A – special offer | 2.50% | 12 months to 23 months | $1000 | July 8, 2022 |
| Defense Bank | N/A – special offer | 2.80% | 11 months | $1000 | July 13, 2022 |
| macquarie | Various | Various | 6 months and 12 months | $5000 | July 6, 2022 |
| Permanent Newcastle | 0.90% | Various | Various | $1000 | July 15, 2022 |
| saint george | N/A – special offer | 2.50% | 12 months to 23 months | $1000 | July 8, 2022 |
| Suncorp | 0.55% | 3.00% | 18 months | $5000 | July 13, 2022 |
Source: RateCity.com.au. Data correct at time of publication, 07/12/2022.
If you already have your money locked up in a term deposit account, you probably won’t benefit from rate increases on your existing investment. But, once mature, it may be worth comparing your options before reinvesting because your current bank may no longer offer the most competitive rate.
In the meantime, if you’re more interested in the flexibility of a savings account, you might be wondering which banks raised savings account rates this month.
At the time of writing, a total of 23 banks have announced rate hikes for at least one of their savings account products, including the following:
Savings account rates rise after RBA cash rate hike in July 2022
| Bank | Rate increase | Highest rate | Effective date |
| CommBank | 0.50% | 1.45% | July 15, 2022 |
| ANZ | 0.50% | 1.15% | July 15, 2022 |
| NAB | 0.50% | 1.00% | July 15, 2022 |
| Westpac | 0.50% | 1.35% | July 22, 2022 |
| macquarie | 0.25% | 1.75% | July 14, 2022 |
| MyState Bank | 0.50% | 2.10% | July 18, 2022 |
| Bankwest | 0.50% | 1.35% | July 15, 2022 |
| Suncorp | 0.70% | 2.00% | July 13, 2022 |
| ubank | 0.50% | 2.35% | August 1, 2022 |
| Bank ME | 0.50% | 1.60% | July 15, 2022 |
| Bank first | 0.50% | 1.75% | July 22, 2022 |
| blank silver | 0.80% | 2.60% | July 15, 2022 |
| ING | 0.50% | 2.60% | July 12, 2022 |
| St. George’s Bank | 0.55% | 1.55% | July 22, 2022 |
| Bank of Melbourne | 0.55% | 1.55% | July 22, 2022 |
| Bank SA | 0.55% | 1.55% | July 22, 2022 |
| Bendigo Bank | 0.60% | 1.85% | July 27, 2022 |
| AMP Bank | 0.75% | 2.10% | August 1, 2022 |
| Australian Military Bank | 0.50% | 1.70% | August 1, 2022 |
| Australian unit | 0.80% | 3.00% | August 1, 2022 |
| bcu | 0.50% | 1.10% | July 26, 2022 |
| Bank of Sydney | 0.50% | 1.05% | July 18, 2022 |
| IMB Bank | 0.50% | 1.50% | July 15, 2022 |
Source: RateCity.com.au. Data correct at time of publication, 07/12/2022.
While 14 of the 23 adopted the full 0.5% hike (including the big four banks), one adopted a partial 0.25% hike and the remaining eight announced rate increases of more than 0. 5%.
If you’re looking for a new place to grow your nest egg, keep in mind that some of these accounts have conditions that must be met in order for you to qualify for the highest interest rate each month.
There is still time for other banks to announce changes in response to this month’s RBA decision. To stay up to date, visit RateCity’s rate tracking hub.
