On Monday, AMP increased the base rate on its savings account by 20 basis points, effective immediately.

The increase takes the rate to 0.80% p.a. up from 0.60% p.a. 

In combination with the 3.50% p.a. bonus interest rate, AMP's total interest rate for its AMP Saver Account sits at 4.30% p.a. in April for balances up to $250,000. 

The bonus rate applies when the customer deposits at least $1,000 the previous month - so, savers would need to deposit $1,000 in May to be eligible for the bonus in June.

Interest would then be paid the following month, so customers could wait up to two months to see interest paid into their account.

The bonus rate is also due to rise to 4.00% p.a. from 1 May, meaning new and existing AMP customers will soon be eligible for a maximum rate of 4.80% p.a.

Although AMP has hiked its savings account rate out of the RBA cycle, it still lags behind the likes of ING, BOQ, RaboBank, and MOVE Bank which offer savings rates of 5% p.a. or greater.

Read More: Which banks offer savings accounts above 5%?

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