NAB-owned Ubank currently offers the highest bonus interest savings rate on the market at 5.50% p.a. but that will see at 25 basis point drop, taking effect from Saturday.
The rate applies to balances up to $100,000 while the rate for amounts over $100,000 up to $250,000 will drop from 5.00% p.a. to 4.75% p.a.
To achieve the bonus rates, Save account holders need a Ubank Spend account and deposit $500 or more per month into any Spend, Bills, or Save accounts.
No interest is paid if the condition isn’t met.
Which savings accounts offer the best interest rate?
It leaves online bank ING holding the top spot in the savings account market with its Savings Maximiser high interest account offering 5.50% p.a. with conditions attached, on balances up to $100,000.
However ING hasn't yet moved to adjust its savings account interest rates in the wake of the RBA cash rate call.
For some the conditions can also be quite onerous, including: Maximum balance $100,000; 5 settled card payments on the linked Everyday account every month; depositing $1,000 into either account; and growing the savings balance.
Should savers fail to meet the criteria in a given month, the base interest rate applies, which is 0.55% p.a.
Another Dutch online bank Rabobank currently offers 5.45% p.a. as a four-month introductory variable rate on deposits up to $250,000, before the rate reverts to 4.10% p.a.
These represent a 15 basis point cut, made a couple of days ago with no notice, and also add to 15 basis point cuts made out-of-cycle in late 2024.
Macquarie Bank's savings account, with its condition-free 5.35% p.a. four-month welcome rate on balances up to $250,000, could also be set for a cut.
As of Wednesday, its savings web page carries a notice that the bank is currently reviewing what the RBA’s cash rate decision will mean for its customers.
It currently offers a variable ongoing rate of 5.00% p.a. on balances up to $1 million, no conditions attached.
See also: Which banks are lowering savings rates after the RBA’s February rate cut?
ANZ only big bank to hold savings rates
Of the big banks, ANZ is the only one yet to announce changes to its savings account rates.
ANZ’s highest interest earning account ANZ Plus offers a total of 5.00% p.a. on its ANZ Save rate, made up of a bonus rate of 4.50% p.a. when the balance grows by $100 or more per month on top of the standard rate of 0.50% p.a.
Westpac was the first of the big banks to announce it would be cutting its savings account rates, effective 28 February.
Its best possible savings account rate will be 4.75% p.a. for its bonus interest Life savings account.
Commonwealth Bank will cut the variable introductory rate on its NetSaver account to 4.90% p.a., also taking effect on 28 February.
Meanwhile, NAB has dropped the top rate on its Reward Saver account to 4.75% p.a.
The same rate will apply to its four-month introductory rate on its iSaver account available to customers who haven’t held an iSaver account in the last 12 months.
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Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.
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Denise Raward
William Jolly
