With its new introductory variable rate of 5.35% p.a. for the first four months on balances up to $250,000, Macquarie is no longer among the banks offering market-leading welcome rates.
However, its unchanged ongoing variable rate of 5.00% p.a. on balances of up to $1 million remains one of the most competitive available, particularly as account holders don't need to meet conditions or pay fees to get the rate.
Macquarie boosted both the introductory and ongoing rates for its Savings Account in October, lifting them by 15 basis points.
It moved first to increase its ongoing rate from its previous level of 4.75% p.a. on 14 October and, three days later, followed up by increasing its introductory rate for new account holders to 5.50% p.a.
The new intro rate sees it back at its previous level of 5.35% p.a., although there’s been no change to the four-month welcome period, nor the $250,000 balance cap.
High-interest savings provisos
Macquarie’s Savings Account remains one of the few high-interest offerings to apply its best rate without account holders having to meet conditions.
Over the past year, several banks have imposed tighter requirements on those achieving their top rates.
In June, NAB’s digital ubank hiked its highest interest rate as a sweetener amid the introduction of a tiered rate structure and an increase to its minimum deposit amount needed to qualify for bonus interest.
It also disabled external payments being made from Save accounts, requiring customers to switch to Spend or Bills accounts.
Ubank currently offers a rate of 5.50% p.a. on savings balances up to $100,000 if customers deposit $500 or more per month into any ubank Spend, Bills, or Save account (not including internal transfers).
In August, ANZ Plus also moved to introduce a requirement to grow an accounts balance by $100 or more a month in order to achieve its top interest rate, currently 5.00% p.a.
See also: The different types of savings account interest rates
Market players
Currently, Dutch-owned Rabobank offers one of the highest introductory rates on the market, offering new customers 5.60% p.a. for their first four months on balances of up to $250,000.
Its ongoing variable rate is lower, at 4.35% p.a., but doesn't impose any minimum balance requirements and or fees.
ING, another Dutch-owned bank, is offering a 5.40% p.a. intro rate on balances of up to $500,000 (as a limited time offer) on its Savings Accelerator product, with the rate later dropping to an ongoing variable rate of 4.70% p.a.
A study by the Australian Competition and Consumer Commission, published in December 2023, found that, on average, 71% of bonus interest accounts did not receive bonus interest in any given month.
Its Retail Deposits Inquiry report noted:
While high headline interest rates may seem attractive to customers, they can come attached with conditions that are hard for customers to meet and keep track of.
It found Australians were being short-changed billions of dollars in interest on savings held in a “complex network” of more than 900 transaction and savings accounts heavily weighted towards luring new customers at the expense of existing ones.
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Looking for somewhere to stash your cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.
Bank Savings Account Base Interest Rate Max Interest Rate Total Interest Earned Introductory Term Minimum Amount Maximum Amount Linked Account Required Minimum Monthly Deposit Minimum Opening Deposit Account Keeping Fee ATM Access Joint Application Tags Features Link Compare Promoted Product Disclosure
then 4.70% p.a.
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Disclosure
Rate varies on savings amount.
Promoted
Disclosure
Rate varies on savings amount.
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then 4.35% p.a.
Promoted
Disclosure
Rate varies on savings amount.
Image by Stefan Stefancik via Unsplash
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