Which banks are increasing savings rates following the RBA’s March decision?

For the tenth consecutive month, the RBA has handed down another hike to the cash rate, taking it to 3.60%.

While mortgage holders have felt the brunt of the rate rises, savers have reaped the rewards with a large number of banks now offering savings rates above 4% p.a.

Last week, Bank of Queensland jumped the gun and increased savings rates out-of-cycle, including one that now features a rate of 5.15% p.a.

Expect more banks to push their bonus savings rates above the 5% threshold, too.

• For February’s movements, see this page. 

This page will detail the latest rate change announcements for savings accounts and term deposits following the RBA's March 25 basis point rate hike - be sure to check back here regularly.

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March highlights

• ubank will increase its savings account rate to 4.60% p.a.
• Virgin Money will increase its Boost Saver account rate to 4.55% p.a. Customers who enable the 'Lock Saver' feature will receive 4.85% p.a.
• ANZ will increase its app-only ANZ Plus Save account to 4.25% p.a.
• ING will increase its Savings Maximiser account rate to 5.00% p.a.
• Great Southern Bank increases Goal Saver to 4.85% p.a.; Advantage Saver to 4.60% p.a.
• Rabobank increases its High Interest Savings account to 5% p.a.
• Move Bank increases its Growth Saver to a maximum rate of 5.00% p.a.

The market leaders

ING to increase savings rates

ING has taken its ever-popular Savings Maximiser account to a rate of 5.00% p.a. following the RBA's March decision.

According to Savings.com.au market research, ING is now the second bank offering a savings rate of 5% or higher.

To receive this rate, ING customers must deposit at least $1,000 from an external source, make five or more settled card purchases with Orange Everyday account, and grow the balance on the nominated Savings Maximiser account by making sure the balance of the account is greater at the end of the month than the month prior.

ING will also increase Savings Accelerator accounts by 0.25% which will see customers with less than $50,000 in their Saving Accelerator earn an interest of 2.60% p.a., up from 2.35% p.a.

Customers with greater balances of $50,000 to $150,000 in their Saving Accelerator will earn an interest rate of 3.50% p.a., up from 3.25% p.a., while customers with more than $150,000 in their Saving Accelerator will earn an interest rate of 3.70% p.a., up from 3.45% p.a.

All interest rate changes will come into effect from 14 March 2023.

Great Southern Bank increases savings rates

Great Southern Bank have hiked two of their savings accounts by 10 basis following the RBA's March decision.

Great Southern Bank’s Goal Saver account tailored to those Gen Z savers aged 18-24 for balances up to $50,000 now offers a rate of 4.85% p.a.

To achieve this rate, customers require a minimum deposit of $500 each month into a Great Southern Bank Everyday Edge account and a minimum of five Visa Debit transactions to achieve the rate.

Savers with larger balances are also set to reap the benefits from Great Southern Bank’s latest increase, with Advantage Saver accounts offering a rate of 4.60% p.a.

To receive this rate on balances between $100,000 and $750,000, customers are required to simply grow balances by a minimum of $250 each month.

All changes will come into effect from 30 March 2023.

Rabobank increases savings rates

Rabobank has increased the 4-month introductory variable rate to its High Interest Savings Account by 25 basis points (0.25%) taking the rate to 5% p.a.

The 5% p.a. offering applies to new Rabobank customers for savings balances up to $250,000 with no deposit or withdrawal conditions to earn the rate.

Once the 4-month introductory rate finishes, the rate will revert to the standard variable rate of 3.75% p.a.

New customers looking to take advantage of the 5% p.a. rate can only open one High Interest Savings Account with Rabobank.

Further, Rabobank increased its PremiumSaver account by 0.30% to 4.45% p.a. up to balances of $250,000, with customers required to deposit $200 each month.

Move Bank breaks the 5% barrier

Move Bank, a customer-owned bank, on 1 April announced it would move up its savings account rates by 25 basis points. 

Most noteworthy was the Growth Saver account moving to 5.00% p.a. - a 0.10% base rate, and a 4.90% bonus rate.

To get the full rate, savers must deposit $200 a month and make no withdrawals; the maximum balance it applies to is $25,000.

ANZ, CommBank, Westpac, NAB

NAB to increase savings rates

NAB has increased its Reward Saver and iSaver accounts to offer a rate of 4.25% p.a. 

NAB's Reward Saver rate of 4.25% p.a. is available for balances north of $1 million, with customers required to make no withdrawals and make at least one deposit on or before the second last banking day of the month. 

NAB's iSaver rate of 4.25% p.a. for balances up to $20 million applies as an introductory rate for the first four months if the customer has not held an NAB iSaver in the previous 12 months. 

NAB will also increase a range of its term deposits by up to 1.10% p.a. The 12-month term will increase to 4.20% p.a.

All changes will come into effect from 17 March 2023.

Westpac to increase savings rates

Westpac is the second major bank to announce interest rate changes to its savings accounts.

Westpac will increase two savings account rates by 0.25% p.a. from 17 March 2023 following the RBA's March decision. 

Both Westpac Life and eSaver accounts will offer a total interest rate of 4.25% p.a. yet for eSaver customers this rate is offered as an introductory offer for the first five months. 

CommBank to increase savings rates

Australia's largest bank has announced its intent to increase savings account rates following the RBA's March decision. 

CommBank's GoalSaver with bonus interest rate will increase by 0.15% p.a. to 4.15% p.a., effective 17 March 2023. This builds on the 0.75% p.a. increase last month.

To achieve CommBank's new GoalSaver rate of 4.15% p.a. customers are required to make a deposit each calendar month into the account, and have a higher account balance at the end of the month compared to the account balance at the start of the month (excluding interest and bank-initiated transactions). 

CommBank's Youthsaver account for those aged under the age of 18 will increase by 0.25% p.a. to 4.25% p.a., effective 17 March 2023.

Further, the Netbank Saver 5-month introductory variable rate will increase by 25 basis points to 4.25% p.a.

ANZ Plus to increase savings rates

ANZ will increase the savings rate upon its app-only ANZ Plus Save account by 25 basis points to 4.25% p.a. from 17 March 2023. 

ANZ Plus Save's new rate of 4.25% p.a. remains one of the most competitive hoop-free savings rates available across Australia's big-four banks.

To be eligible to receive the rate for balances up to $250,000, there are no minimum deposit or transaction requirements. 

For customers who prefer the certainty of a fixed return, ANZ will offer a new 12-month Advance Notice term deposit rate of 4.40% p.a. effective 14 March 2023.

The best of the rest

ubank to increase savings rates

Another month of being the first to move savings rates following an RBA cash rate decision, ubank will increase its 'Save' account rate by 0.25% to a total of 4.60% p.a. from 1 April 2023.

To receive ubank's rate of 4.60% p.a. customers are required to have a ubank Spend account and deposit $200 per month (excluding internal transfers) into any Spend and Save accounts.

Virgin Money increases savings rates

Effective 8 March, BoQ-owned Virgin Money will increase the maximum rate on its Boost Saver to 4.55% p.a.

To attain this maximum rate, savers must deposit at least $2,000 per month into their Go transaction account, and make five settled debit card purchases too.

Further, the maximum rate increases to 4.85% p.a. if savers use the optional 'Lock Saver' feature. This feature boosts the savings rate if account holders lock away all or part of their funds for 32 days.

The maximum deposit cap is $250,000.

Macquarie Bank to increase savings rates

Macquarie Bank will increase its savings account welcome rate to 4.65% p.a. for new customers for the first four months on balances up to $250,000.

The ongoing interest rate customers earn on both their savings and everyday transaction accounts will increase to 4.00% p.a., on balances up to $250,000.

These changes will come into effect on 22 March 2023.

St George, Bank SA, and Bank of Melbourne to increase savings rates

Westpac subsidiaries St George, Bank SA, and Bank of Melbourne will increase Incentive Saver accounts by 0.25% from 17 March 2023 taking the total rate to 4.50% p.a. 

To receive this rate, customers are required to grow account balances by $50 each month and ensure the account balance does not fall below $0.

MyState Bank to increase savings rates

MyState Bank will increase its Bonus Saver account rate to 4.50% from 1 April 2023. 

To receive this new rate each month, MyState Bank customers are required to deposit $20 and make five settled Visa Debit transactions each month using a linked Glide Account.

RACQ Bank to increase savings rates

RACQ Bank will increase its Bonus Saver account by 0.25% p.a. and term deposit rates by up to 0.60% p.a. from 21 March 2023.

RACQ Bank's Bonus Saver account will increase to 4.50% p.a. with customers requiring to deposit a minimum $100 each month and make no withdrawals in order to receive the new rate.

AMP makes outsized savings rate increase

AMP announced on 13 March that it will increase its savings account rate by 50 basis points, effective 1 May.

This might account for the fact it did not appear to increase the rate in February, instead opting for bi-monthly increases.

The increase applies to the bonus rate, taking it to 4.00% p.a. - the total rate including the base rate will be 4.60% p.a.

To attain the full 4.60% p.a. savers must deposit $1,000 or more in a calendar month, payable on balances up to $250,000. 

AMP is distinct from other accounts in that there is a two-month lag from when interest is actually paid.

For example, if someone met the criteria in May, the interest would be calculated in June, and not actually paid into the account until July.

Image by Melissa Walker Horn via Unsplash