Macquarie's had previously paid 4.75% p.a. interest on balances up to $1 million.
The new rate represents a substantial 25-basis point jump on its digital, fee-free, no deposit condition savings account product.
New account holders can continue to earn 5.35% p.a. as a fixed welcome rate for four months on balances up to $250,000 before the ongoing rate kicks in.
Macquarie has confirmed there'll be no change to its welcome rate as part of the changes.
No deposit conditions continue
Macquarie's digital Savings Account is notable in the high-interest savings product market for not imposing deposit conditions in accessing its best rate.
In recent months, both ubank and ANZ Plus introduced additional conditions in obtaining their highest rate on their high-interest savings products.
Deposit conditions are becoming increasingly controversial after the ACCC's deposit inquiry from late 2023 found that upwards of 7-in-10 savers do not meet deposit criteria to attain the highest interest rates every month.
Macquarie's new 5% rate is also highly competitive with falling rates now being offered across the retail term deposit market.
The move largely came as a shock, after months of market stasis for savings account rates and rate cuts in the term deposit space amid anticipation of an RBA rate cut either later this year or early 2025.
Not all good news
Alongside its increased savings account rate, Macquarie is cutting the rate offered on its Macquarie transaction account to 2.75% p.a. from Thursday.
That's a 2 percentage point drop on its current rate of 4.75% p.a.
However, Macquarie describes the new rate as market-leading for transaction accounts.
Its product also does not come with international transaction fees or international ATM fees.
Macquarie has been an aggressive player in the retail banking market in the past several years, more than doubling its household deposit book from $26 billion in August 2021 to more than $65 billion in August 2024.
Special offer: Savings Accelerator (Kick Starter offer).
For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
Disclosure
FEATURED
Savings Accelerator
Special offer: Savings Accelerator (Kick Starter offer).
For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
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Harry O'Sullivan
Denise Raward
Jacob Cocciolone
